Define Bailment. Discuss the essential elements of a contract of bailment. Write the difference between bailment and sale. And also difference between bailment and Pledge what are the types of bailment? “A bailment is a delivery of goods in trust upon a contract, express or implied that the trust shall be faithfully executed on the part of the bailee.”

Bailment:-

    The team “Bailment” is derived from a French word “Ballior” which means “to give or to deliver”. It has becomes as a  technical term for the Law of Bailment in the Common Law, where it means any kind of handing over of certain property, particularly good, for a certain period. It involves a change of possession it means the delivery of the goods which are to be returned or delivered according to the order of the giver. 

Definitions: -

 Section 148 defines “Bailment”, “Bailor” and “Bailee”, 

Sec.148 :-

     Bailment”, “Bailor” and “Bailee” defined’, - A “bailment” 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 directions 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”. 

Example :-

    Ram gives his Motor Car on hire to Ramesh for one day Ramesh prepares the ring. He collects some charges from Ram. Ram is the bailor. Ramesh is Bailee. It is a contract of bailment. 

Essential features of a Contract of Bailment   

1. Delivery of the goods by the bailor

2. Delivery should be upon Contract

3. Such delivery should have a specific purpose

4. Such delivery is temporary 

Delivery of possession: - 

    The first and most important essential characteristic feature of the bailment is the delivery of possession of the property from one person to another. The delivery of the goods is temporary and for some specific purpose only. After the purpose is over, the goods must be returned to the bailor. 

Blackstone explains “A bailment is a delivery of goods in trust upon a contract, express or implied that the trust shall be faithfully executed on the part of the bailee.”

    In Ultzen vs Nicols 1894, the plaintiff went to a restaurant for dining. When he entered the room, the waiter took his coat and hung it on a hook behind him. When the plaintiff arose to leave, the coat was gone. It was held that the waiter voluntarily took the responsibility of keeping the coat while the customer was dining and was thus a bailee. 

    Contrasting this case with Kaliaperumal Pillai vs Visalakshmi AIR 1938, we can see the meaning of delivery. In this case, a woman gave some gold to a jeweler to make jewelery. Every evening she used to take the unfinished jewels, put it in a box, lock the box and take the keys of the box with her while leaving the box at the goldsmith. One morning, when the opened the box the gold was gone. It was held that, in the night, the possession of the gold was not with the jeweler but with the plaintiff because she locked the box and kept the keys with her.

Delivery should be upon contract :-

    There must be a contract between the bailor and the bailee. The bailor delivers his goods to the bailee for temporary possession for a specific purpose. After fulfilling such specific purpose, the bailee returns the goods to bailor. Therefore, it requires an express or implied contract. 

    In State of Gujarat vs Menon Mohammad AIR 1967, SC held that bailment can happen even without an explicit contract. In this case, certain motor vehicles were seized by the State under Sea Customs Act, which were then damaged. SC held that the govt. was indeed the bailee and the State was responsible for proper care of the goods.

Delivery should have a specific purpose :-

    The object of the bailment is ‘temporary custody of the property’ in the bailee’s hands. The bailor hands over his goods to the bailee for a specific purpose and intention. 

Examples  

    We give cloth to a tailor for stitching our dresses. Tailor is a bailee, and we are bailers. The purpose is to stitch the dresses. 

We give gold to goldsmith to get into ornaments. The purpose is to make the ornaments.

Delivery is for Temporary:-

    The goods handed over to a bailee are intended to keep them in his possession for a limited time and for a specific purpose. After the prescribed time, or after fulfilling the specific purpose, it is the duty of the bailee to return it. The delivery is only for temporary.

Difference between Bailment and Sale

Bailment

Sale

1. Here parties are called bailer and bailee.

2. Here parties are called buyer and seller. 

3. There must be returnable.

4. Such rule is not applicable

5. There is no question of Shipping of title. 

6. Though procession goes to bailee, title rests 

7. Here title will get shifted from seller to buyer.

8. The concept of bailment is applicable to movable property only.

9. The concept of Sale is applicable to both movable and immovable.    

Bailment may be with one directional consideration or two directional considerations. sale always will be with two directional consideration  

Difference between Bailment and Pledge – 

Purpose: - 

    A pledge is made for a specific purpose, while bailment can be made for any purpose.

Property: - 

    In bailment, the bailee gets only the possession of goods bailed. The ownership remains with the bailor. In the case of pledge, the pledgee acquires a special property in the goods pledged whereby he gets possession coupled with the power of sale, on default.

Right of sale :-

     Bailee can exercise a lien on the goods bailed. He has no right of sale. But in case of a pledge, the pledge can sell the goods after due notice to pawner.

The main types of bailment are given below:

Gratuitous Bailment: 

    Where the bailee does not charge nay thing for the bailment it is called gratuitous bailment.

Bailment for Reward: 

    When the bailor charges anything for his services it is called bailment for rewards.

Bailment for Use: 

    When the bailor delivers an article to the bailee for use by the later in any general or specific way, this is called a bailment for use.

Illustration 

    X delivers his watch to Y for the latter to use it for one month. Here bailment is bailment for used.

Bailment of safe custody: 

    If valuable goods or even coins or notes in box are deposited for protection, it is called bailment for safe custody.

Illustration 

    X gives his watch to Y for the latter to keep it in safe custody for two months.

Bailment for Mutual Benefit: 

    When the bailor delivers his articles to another for repair or gives his goods to carrier for carriage, it is known as bailment for mutual benefit.

Bailment for Pledge:

     It is a contract whereby an article is deposited with a lender as security for the payment of a loan or performance of a promise.

Bailment for Finding of lost Goods:

     If a person already in possession of the lost goods of another, he thereby becomes the bailee and the owner becomes the bailor.