Question no.6

 

Question

Explain the duties and liabilities of a bailee under Sections 148, 149, 150, 151 and 152 of the Indian Contract Act, 1872. Discuss the essentials of delivery to a bailee, disclosure of defects in goods, and the standard of care required from a bailee.

Answer

Section 148 – Bailment:
Bailment means the delivery of goods by one person, called the bailor, to another person, called the bailee, for some purpose, upon a contract that the goods shall be returned or otherwise disposed of according to the directions of the bailor when the purpose is accomplished.

Section 149 – Delivery to bailee:
The delivery of goods to the bailee may be made by anything which has the effect of putting the goods in the possession of the intended bailee or a person authorised by him.

Section 150 – Bailor's duty to disclose faults:
The bailor is bound to disclose to the bailee any faults in the goods bailed which materially interfere with their use or expose the bailee to extraordinary risks. If the bailor fails to disclose such defects, he is responsible for the resulting damage. In the case of bailment for hire, the bailor is liable even if he was unaware of the defect.

Section 151 – Care to be taken by bailee:
The bailee must take as much care of the goods bailed to him as a person of ordinary prudence would take of his own goods of the same bulk, quality and value.

Section 152 – When bailee is not liable for loss:
If the bailee has taken the amount of care required under Section 151, he is generally not liable for loss, destruction or deterioration of the goods, unless there is a special contract imposing a different liability.