Introduction

 Law of Bailment is a very important law of today’s world .The history of Bailment law in England may be start with the case of Coggs v. Bernard, decided by the English Court of Queen’s Bench in the second year of Queen Anjne (1703) although the subject was slightly touched upon now and then in and some of the older reports, the word itself as a title of the law is rarely found in use earlier than the beginning of the eighteenth century. [1]The question raised in Coggs v. Bernard, was as to the liability of one who had agreed to carry goods safely, but who was not a common carrier, and was not to be paid for his work, and the only question decided was that such a bailee was liable for any damage done to them tlirough his neglect but Chief Justice Holt, in his judgment expounded for the first time the English law of Bailment, and finding the common law precedents few and unsatisfactory, went to the civil law for argument and illustration, and from Bracton and other continental jurists drew material for a classification of Bailment law, which, though afteiards slightly altered by Sir William Jones,! has remained the classification familiar to every succeeding generation of lawyers unto this day.

Definitions

[2]The term bailment is derived from the French bailor, “to deliver”, it is generally considered to be a contractual relationship since the bailor and bailee, either expressly or impliedly, bind them to act according to particular terms. To define “Bailment” we can say it is the delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the direction of the person delivering them. The person delivering the goods is called the “bailor”. The person to whom they are delivered is called the “bailee”. Bailment is not the same as a sale, which is an intentional transfer of ownership of personal property in exchange for something of value. A bailment involves only a transfer of possession or custody, not of ownership.

A rental or lease of personal property might be a bailment, depending upon the agreement of the parties. For an example, [3]A bailment is created when a parking garage attendant, the bailee, is given the keys to a motor vehicle by its owner, the bailor. The owner, in addition to renting the space, has transferred possession and control of the vehicle by relinquishing its keys to the attendant. If the keys were not made available and the vehicle was locked, the arrangement would be strictly a rental or lease, since there was no transfer of possession. A gratuitous loan and the delivery of property for repair or safekeeping are also typical situations in which a bailment is created.

Landlord/Tenant is a good example, [4]where the language of the agreement clearly shows intent to create a landlord/tenant relationship, as opposed to a bailment, the contract may be conclusive of that relationship in evaluating the question of whether tenant may claim damages from landlord when objects on premises are damaged.

Categories

There are three types of bailment and they are given bellow.

1. Bailment for the benefit of the bailor and bailee: A bailment for the mutual benefit of the parties is created when there is an exchange of performances between the parties (e.g. a bailment for the repair of an item).
2.  Bailment for the sole benefit of the bailor: A bailor receives the sole benefit from a bailment when a bailee acts gratuitously (e.g. a restaurant, a bailee, provides an attended coatroom free of charge to its customers, the bailors).
3.  Bailment for the sole benefit of the bailee: A bailment is created for the sole benefit of the bailee when a bailor acts gratuitously (e.g., the loan of a book from a library).

A bailment for the shared benefit of the parties is formed when there is an trade of performances between the parties. A bailment for the repair of an item is a bailment for mutual benefit when the bailee receives a fee in replace for his or her work. A bailor receives the sole benefit from a bailment when a bailee acts gratuitously for example, [5]if a restaurant, a bailee, provides an attended coatroom free of charge to its customers, the bailors. By virtue of the terms of the bailment, the bailee agrees to act without any expectation of compensation. A bailment is created for the sole benefit of the bailee when both parties agree the belongings momentarily in the bailee’s supervision are to be used to his or her own advantage without giving anything to the bailor in return. The loan of a book from a library is a bailment for the sole benefit of the bailee.

Elements

Three elements are generally necessary for the existence of a bailment and they are given bellow:

Delivery of possession

[6]Actual possession of or control over property must be delivered to a bailee in order to create a bailment. The delivery of actual possession of an item allows the bailee to accomplish his or her duties toward the property without the interference of others. Control over property is not necessarily the same as physical custody of it but, rather, is a type of constructive delivery. The bailor gives the bailee the means of access to taking custody of it, without its actual delivery. The law construes such action as the equivalent of the physical transfer of the item. The delivery of the keys to a safe-deposit box is constructive delivery of its contents.

Personal property acceptance

[7]Only personal property tangible and intangible is baileble. A requisite to the creation of a bailment is the express or implied acceptance of possession of or control over the property by the bailee. A person cannot unwittingly become a bailee. Because a bailment is a contract, knowledge and acceptance of its terms are essential to its enforcement.

Consideration

[8]Consideration, the exchange of something of value, must be present for a bailment to exist. Unlike the consideration required for most contracts, as long as one party gives up something of value, such action is regarded as good consideration. It is sufficient that the bailor suffer loss of use of the property by relinquishing its control to the bailee; the bailor has given up something of value—the immediate right to control the property.

Duties and Responsibilities

1. [9]The bailor is bound to disclose to the bailee faults in the goods bailed, of which the bailor is aware, and which materially interfere with the use of them, or expose the bailee to extraordinary risk and if he does not make such disclosure, he is responsible for damage arising to the bailee directly from such faults. Illustrations, A lends a horse, which he knows to be vicious, to B. He does not disclose the fact that the horse is vicious. The horse runs away. B is thrown and injured. A is responsible to B for damage sustained.

1. [10]In all cases of bailment the bailee is bound to take as much care of the goods bailed to him as a man of ordinary prudence would, under similar circumstances, take of his own goods of the same bulk, quantity and value as the goods bailed. [11]The bailee, in the absence of any special contract, is not responsible for the loss, destruction or deterioration of the thing bailed, if he has taken the amount of care of it described in section 151.

1. If the bailee makes any use of the goods bailed which is not according to the conditions of the bailment, he is liable to make compensation to the bailor for any damage arising to the goods from or during such use of them. Illustrations, A lends a horse to B for his own riding only. B allows C, a member of his family, to ride the horse. C rides with care, but the horse accidentally falls and is injured. B is liable to make compensation to A for the injury done to the horse.

1. If the bailee, with the consent of the bailor, mixes the goods of the bailor with his own goods, the bailor and the bailee shall have an interest, in proportion to their respective shares, in the mixture thus produced. If the bailee, without the consent of the bailor, mixes the goods of the bailor with his own goods and the goods can be separated or divided, the property in the goods remains in the parties respectively; but the bailee is bound to be bearing the expense of separation or division, and any damage arising from the mixture. A bails 100 bales of cotton marked with a particular mark to B. B, withoutA’s consent, mixes the 100 bales with other bales of his own, bearing a different mark; A is entitled to have his 100 bales returned, and B is bound to bear all the expense incurred in the separation of the bales, and any other incidental damage.

1. If the bailee, without the consent of the bailor, mixes the foods of the bailor with his own goods in such a manner that it is impossible to separate the goods bailed from the other goods, and deliver them back, the bailor is entitled to be compensated by the bailee for the loss of the goods.

1. By the conditions of the bailment, the goods are to be kept or to be carried, or to have work done upon them by the bailee for the bailor, and the bailee is to receive no remuneration, the bailors shall repay to the bailee the necessary expenses incurred by him for the purpose of the bailment.

1. The lender of a thing for use may at any time require its return, if the loan was gratuitous, even though he lent it for a specified time or purpose. But if, on the faith of such loan made for a specified time or purpose, the borrower has acted in such a manner that the return of the thing lent before the time agreed upon would cause him losses exceeding the benefit actually derived by him from the loan, the lender must, if he compels the return. Indemnify the borrower for the amount in which the loss so occasioned exceeds the benefits so derived.

1. It is the duty of the bailee to return, or deliver according to the bailor’s directions, the goods bailed, without demand, as soon as the time for which they were bailed has expired, or the purpose for which they were bailed has been accomplished. [12]If by the fault of the bailee, the goods are not returned, delivered or tendered at the proper time, he is responsible to the bailor for any loss, destruction or deterioration of the goods from that time.
   1. A gratuitous bailment is terminated by the death either of the bailor or of the bailee. A bailment is ended when its purpose has been achieved, when the parties agree that it is terminated, or when the bailed property is destroyed. A bailment created for an indefinite period is terminable at will by either party, as long as the other party receives due notice of the intended termination. Once a bailment ends, the bailee must return the property to the bailor or possibly be liable for conversion. Contract of bailment is voidable at the option of the bailor, if the bailee does any act with regard to the foods bailed, inconsistent with the conditions of the bailment.

1. In the absence of any contract to the contrary, the bailee is bound to deliver to the bailer, or according to his directions, any increase or profit which may have accrued from the goods bailed. The bailor is responsible to the bailee for any loss which the bailee may sustain the reason that the bailor was not entitled to make the bailment, or to receive back the goods, or to give directions, respecting them.
2. [13]If the bailor has no title to the goods, and the bailee, in good faith, delivers them back to, or according to the directions of the bailor, the bailee is not responsible to the owner in respect of such deliver. But If a person, other than the bailor, claims goods bailed he may apply to the court to stop delivery of the goods to the bailor, and to decide the title to the goods.

1. The finder of goods has no right to use the owner for compensation for trouble and expense, voluntary incurred by him to preserve the goods and to find out the owner but he may retain the goods again the owner until he receive such compensation; and where the owner has offered a specific required for the return of goods lost, the finder may sue for such reward, and may retain the goods until he received it.

1.  Where the bailee has, in accordance with the purpose of the bailment, rendered any service involving the exercise of labour or skill in respect of the goods bailed he has in the absence of a contract to the contrary, a right to retain such goods until he receives due remuneration for the services he has rendered in respect of them.

1. [14]Bankers, factor, wharfingers, attorneys of a High Court and policy brokers may, in the absence of a contract to the contrary, retain as a security for a general balance of account, any goods bailed to them; but no other person have a right retain, as a security for which balance, goods, bailed to them, unless is an express contract to that effect.

1. The bailment of goods as security for payment of a debt or performance of a promise is called “pledge”. The bailor is in this case called “pawnor”. The bailee is called “pawnee”. The pawnee may retain the goods pledged, not only for payment of the debt or the performance of the promise, but for the interests of the debt, and all necessary expenses incurred by him in respect to the possession or for the preservation of the goods pledged. The pawnee shall not, in the absence of a contract to that effect, retain the goods pledged for any debt or promise of other than the debtor promise for which they are pledged; but such contract, in the absence of anything to the contrary, shall be presumed in regard to subsequent advances made by the pawnee.

1. The pawnee is entitled to receive from the pawnor extraordinary expenses incurred by him for the preservation of the goods pledged. If the pawnor makes default in payment of the debt, or performance, at the stipulated time, or the promise, in respect of which the goods were pledged, the pawnee may bring as suit against the pawnor upon the debt or promise, and retain the goods pledged as a collateral security; or he may sell the thing pledged, on giving the pawnor reasonable notice of the sale. If the proceeds of such sale are less than the amount due in respect of the debt or promise, the pawnor is still liable to pay the balance. If the proceeds of the sale are greater that the amount so due, the pawnee shall pay over the surplus to the pawnor. [15]If a time is stipulated for the payment of the debt, or performance of the promise, for which the pledged is made, and the pawnor makes default in payment of the debt or performance of the promise at the stipulated time, he may redeem the goods pledged at any subsequent time before the actual sale of them; but he must, on that case, pay, in addition, any expenses which have arisen from his default.

1. If a third person wrongfully deprives the bailee of the use of possession of goods bailed, or does them any injury, the bailee is entitled to use such remedies as the owner might have used in the like case if no bailment has been made; and either the bailor or the bailee may bring a suit against a third person for such deprivation or injury. Whatever is obtained by way of relief of compensation in any such suit shall, as between the bailor and the bailee, be dealt with according to their respective interests.

 Conclusion

Bailment is a very much important rule to introduce in the modern world. It has various kinds of applications in our life and the applications are very important. Bailment is arises for the betterment of the contractual agreement in the field of law of contract. If bailment law was not introduced in the modern world many contractual problem will be unanswered.

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[1] The Essay on Bailments of Sir William Jones, was published in 1781, 
a 1 2 Am. L. Rev. 77.

 [2] Bailment - Categories, Elements, Rights And Liabilities - Termination 
- Property, Bailor,
 Bailee, and Possession - JRank Articles http://law.jrank.org/pages/4626/
Bailment.html#ixzz1dYwphfAS

[4] Daily Development for Tuesday, December 23, 2003 by: 
Patrick A. Randolph, Jr. Elmer F. Pierson Professor of
 Law UMKC School of Law Of Counsel: Blackwell Sanders Paper Martin 
Kansas City, Missouri dirt@umkc.edu

 [5] Hall, Kermit L. 1991. A History of American Legal Culture: 
Cases and Materials.New York: Oxford Univ. Press.