ABSTRACT
The doctrine of bailment enshrined in the Indian Contract Act governs the transfer of possession of goods and services for a temporary period. It outlines the essentials, liabilities, rights, and duties of the bailor and bailee, along with special provisions related to bailment. This paper examines the rights and duties of the bailor and bailee concerning disclosure, care, return, and indemnification. It also explores gaps in the existing literature, and after addressing those gaps and comparatively analyzing these provisions in other jurisdictions, it makes recommendations regarding changes and modifications to the Contract Act concerning provisions related to bailment contracts.
INTRODUCTION When the possession of any good or goods is delivered by one person to another by mutual agreement, in oral or written form, for some specific purpose and it is delivered back to the person after fulfilment of that specific purpose, is called a Contract of Bailment. The person who delivers the good is called “Bailor” and the person to whom the goods are delivered is called “Bailee”. In bailment, the delivery of possession[1] of good is done, not the title of the good is required. It is defined in Section 148 of the Indian Contract Act as:
“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.”[2]
[1]Indian Contract Act 1872, s 149.
[2]Indian Contract Act 1872, s 148.