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Bailment
The word 'Bailmemt' is derived from the French word 'ballier' which means 'to deliver'. Etymologically, it means any kind of 'handing over'. In legal sense, it involves change of possession of goods from one person to another for some specific purpose.
Sec. 148 of the Indian Contract Act 1872, defines 'Bailmemt' as 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' and the person to whom they are delivered is called the 'bailee'.
Sometimes there may be Bailmemt even without a contract. For example, when a person finds goods belonging to another, a relationship of bailee and Bailor is automatically created between the finder and the owner.
Requisites of Bailmemt:-
- Contract. A Bailmemt is usually created by agreement between the Bailor and the bailee. The agreement May be express or implied. In certain exceptional cases, Bailmemt is implied by law as between a finder of goods and the owner.
- Delivery of possession. A Bailmemt necessarily involves delivery of possession of goods by Bailor to bailee. The basic features of possession are control and an intention to exclude others. As such, mere custody of goods does not create relationship of Bailor and bailee. Delivery of possession may be actual or constructive. Actual delivery May be made physically handing over the goods bailed to the bailee. Constructive or symbolic delivery May be made by doing something which has the effect of putting the goods in the possession of the intended bailee or any person authorised to hold him on his behalf (Sec. 149). This means possession is transferred to the bailee without actually handing over the goods physically. The delivery of a railway receipt amounts to delivery of the goods.
- For some purpose. The delivery of goods from bailor to bailee must be for some purpose. If goods are delivered by mistake to a person, there is no Bailmemt.
- Return of specific goods. It is agreed between the bailor and the bailee that as soon as the purpose is achieved, the goods shall be returned, there is no Bailmemt. But there is Bailmemt even if the goods bailed are, in the meantime, altered in form, e.g., when a piece of cloth is stitched into a suit. Bailmemt is concerned only with goods - Goods, as defined in Sec. 2(7) of the Sales and Goods Act 1930, mean every kind of movable property other than money and actionable claims. Moreover, in a contract of Bailmemt it is only possession that passes from the bailor to the bailee and not ownership. Thus if the property in goods is transferred for money consideration, it is a sale and not Bailmemt. Similarly where money is deposited in a banking account (not in safe deposit vault) , the relationship of debtor and creditor is created; there is no Bailmemt. The bank is not liable to return, when asked to do so, the very same money.
