Agreement for the bailment of goods

Date:

Bailor name:

Bailor address:

Bailee name:

(Hereinafter reffered to as BALIOR, Which expression shall where the context so admit include the bailor’s succession in title.)

This agreement is made on__________________________ between [Bailor] of _____________________________[address.]of the one part and ____________________________________[Bailee] of__________________________[address] hereinafter called the Bailee of the other part.

  Whereby it is agreed as follow:

1.The Bailor shall deliver to the Bailee the goods as described in the schedule

below and the Bailee shall keep the said goods as bailment for the period of six months from the date hereof or for such period as may be agreed between the parties hereto upon such terms and consideration as hereinafter appearing.

 

2.The Bailor shall pay to the Bailee a sum of Rs........ (Rupees) only

per month or part of a month as a consideration for such bailment and the amount shall be payable in advance by the third day of every month on which it shall become due.

 

3.The Bailor declares that

(a) he is the owner of the goods specified in the schedule hereto and such goods are free from charges, encumbrances or claims by any person that the Bailor is entitled to make this bailment or to receive back the goods bailed or to give directions respecting them;

 (b) the particulars of the goods and the other information set out in the schedule to this agreement are correct in every respect;

 (c) the goods specified in the schedule to this agreement

are in good order repair and condition as regard their fitness and merchantable quality and comply in all respects with the requirements of the law for the time being in force in regard to their possession, storage or preservation;

(d) the Bailor is not aware of any faults or defects in the goods bailed which may materially interfere with the use of them or may expose the bailee to extraordinary risks.

 

4. In the event if any of the above representations being false loss to the Bailee shall be deemed to have occurred for the purpose of clause 5 of this agreement on the date upon which the goods bailed were delivered by the Bailor to the Bailee and the Bailee shall be entitled to avail himself of all or any of the remedies provided by the said clause No.5.

 

5. (1) The Bailor shall on demand indemnify the Bailee against all loss or damage which the Bailee may sustain under or as a result of this bailment whether or not such loss or damage results from the commission of any breach by the Bailor and whether or not the Bailee has any legal right to claim against the Bailor for such loss or damage or has availed himself of his legal remedies against the Bailor or the goods bailed and the Bailor shall be liable to pay the amount of such loss or damage to the Bailee immediately the same occurs.

(2) For the purpose of this agreement the Bailee.s loss shall be deemed to have occurred as provided by clause 4 hereof or upon termination or upon the Bailor making default for fourteen days in payment of any sum due under the agreement whichever of the above events shall first occur.

 

PROVIDED that where the Bailee has, in exercise of his lien and claim, sold the goods upon notice to the Bailor, credit shall be given for the net proceeds of sale (after deducting the costs of storage, insurance and sale and after adjustment of all other sums due under this agreement) in computing the loss.

 

PROVIDED FURTHER that the bailee shall not be under any liability to the Bailor to re-deliver the goods bailed nor shall incur any liability to the Bailor if the goods bailed are destroyed and are no longer in existence or a valuable to be repossessed where the Bailor deliberately failed to disclose to the Bailee the defaults in the goods bailed, of which the Bailor was aware, and which has exposed the Bailee and the goods bailed to extraordinary risks and danger or when the goods bailed are in danger of perishing or of losing greater part of its value the Bailor fails and neglects to take delivery of the goods in spite of a notice given upon him by the Bailee to this effect.

 

6. The Bailee covenants with the bailor as follows:.

(1) Immediately after signing of this agreement the Bailee shall insure the goods bailed at the cost of the Bailor and keep the same insured during the continuance of this agreement against loss or damage by accident fire and theft to the full replacement value thereof with some insurance company to be approved by the Bailor.

 

PROVIDED HOWEVER that the Bailee can recover the full value of the goods insured but in that event he will have to account to the Bailor retaining so much as covers his own expenses and will be a trustee for the balance.

(2) The Bailor shall 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, quality and value as the goods bailed and shall not convert them2 even by stealing by a third party3 nor shall intentionally do in relation to the goods bailed, any act with the Bailors right of property therein.

 

PROVIDED FURTHER that the Bailee, in the absence of any special contract to the contrary, shall not be responsible for the loss, destruction or deterioration of the goods bailed, if he has taken the amount of care for the goods bailed as  described in this clause.

 

 (3) The Bailee shall return the goods, bailed, or deliver them according to the Bailor.s directions without any demand being made by the Bailor, as soon as the time for which they are bailed shall expire or the purpose for which they are bailed shall be accomplished and if the Bailee shall fail to deliver or tender the goods bailed at the proper time he shall be responsible to the Bailor for any loss,

destruction or deterioration of the goods bailed from that time.

 

PROVIDED HOWEVER, if it shall subsequently transpire that the Bailor has no title to the goods bailed, but the Bailee in good faith delivers them back to, or according to the directions of the Bailor the Bailee shall not be responsible to the actual owner of the goods in respect of such delivery.

(4) If the Bailee makes any use of the goods bailed contrary to the terms of bailment then and in such an event he will be liable to the Bailor for any damage caused to the goods during such default.

(5) If the Bailee, without the consent of the Bailor, mixes the goods bailed with his own goods in such a manner that it is impossible to separate them and deliver them back to the Bailor, the Bailee will be responsible to the Bailor for the loss of the goods bailed caused thereby.

 

PROVIDED HOWEVER, where the goods so mixed without the consent of the Bailor can be separated or divided, the property in the goods shall remain in the parties respectively, but the Bailee shall be responsible to the Bailor for the expenses of separation or division so made and also for any loss or damage

arising from the mixture.

 

PROVIDED FURTHER where the goods are so mixed by the Bailee with the consent of the Bailor, the Bailor and the Bailee shall have an interest in proportion to their respective shares in the mixture so produced and the Bailee shall not be responsible to the Bailor for any loss or damage arising from such mixture.

 

7. In the event of default in making payment by the Bailor to the Bailee in accordance with the terms if this agreement, the Bailee shall be entitled to serve a notice to the Bailor expressing his intention to recover the dues by selling the goods bailed if the Bailor shall fail to settle the claim within fifteen days from the date of such notice and in the event of failure or refusal by the Bailor to comply with the said notice the Bailee shall be competent to make such sale and appropriate the sale proceeds towards adjustment of his claim and make refund of the balance amount, if any, to the Bailor.

 

8. This agreement is terminable by either party by giving a week.s notice and upon such termination the expenses and consideration as might be accrued and payable to the Bailee shall be apportioned accordingly.

 

PROVIDED HOWEVER this agreement shall become voidable at the option of the Bailor, if the Bailee shall do any act with regard to the goods bailed, inconsistent with the conditions herein contained.

 

Schedule of Property Above Referred to:

1.IN WITNESS etc.