09-04-2014, 12:43 PM
Bailment
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A bailment is the transfer of
possession of personal property
without the transfer of ownership,
usually on the understanding that the property will be returned.
The party who transfers the property is called the bailor,
The party to whom the property is transferred is the bailee.
Duties of a Bailor
Disclose the defects/faults in goods bailed.
reimburse the expenditure incurred in keeping goods .
indemnify in case of loss to bailee because of defective title.
Bound to accept the goods after purpose is accomplished.
Duties of a Bailee
To take care of the property bailed to them.
Not to mix it with his own goods.
Return the goods.
Return extra profit accruing from goods bailed.
Remedies of a Bailee
A bailee who is unremunerated and has performed its side of a contractual bailment, is entitled a remedy for the services rendered.
The remedies of a bailee include:
Damages and quantum meruit;
Lien; and
Right of Sale.