BAILMENT CONTRACTS

WHAT IS A CONTRACT

The word Contract was derived from a Latin word Contractum. The word contractum means drawn together. The following are definition with regard to Contract.

  Definition of Contract Agreement creating and defining obligations between the parties is called

Contract. - Salmond Thus Contract is defined as agreement. To form an agreement, two elements are

needed, namely; Offer and Acceptance.

BAILMENT CONTRACTS

A Contract where one party delivers goods to the other upon return basis to fulfil a specific purpose is called bailment contract. It includes two parties namely; bailer and bailee. The person who is delivering the goods is called bailer and the person to whom goods are delivered, is called bailee.

  Example: A has handed over his fan to B for the purpose of repairs. It is bailment

contract. A is bailer and B is bailee. Similarly X has handed over his dress Y for the purpose of washing. It is also bailment Contract where X is bailer and Y is bailee.

TYPES OF BAILMENT CONTRACTS

The bailement contracts are classified into Gratuitous bailments and Non – Gratuitous bailments.

Gratuitous Bailments: If there is only one directional consideration, it is called Gratuitous bailment. In here, the bailment contract is for the benifit of either the bailer or the bailee only.

  Example 1: Mr. A, while going to abroad, has handed over his gold to this friend

namely B for Safe custody. Here bailer only is getting benefited.   Example 2: Y has taken Scooter for X who is his friend for 1 day. Here only bailee

is being benefited.

NON – GRATUITOUS BAILMENTS:

Non – Gratuitous bailments: If there is two directional consideration it is called Non-Gratuitous bailment. In here, the bailment contract is for the benefit of both parties.

  Example: X has handed over his dress to B who is owner of a laundry for washing.

At a charge of Rs. 10/-. Here both parties are being benefited.

FEATURES OF BAILMENT

In case of bailment, as there is delivery of goods, there will be change in procession.

Though there is change in procession, there will be no change in title. Bailment includes return of goods after fulfilment of purpose. In delivering the goods, there must be specific purpose. 

DIFFERENCE BETWEEN BAILMENT AND SALE

BAILMENT1. Here parties are called bailer and bailee.

2. There must be returnable.

3. There is no question of Shipping of title. Though procession goes to bailee, title rests with bailer.4. The concept of bailment is applicable to movable property only.5. Bailment may be with one directional consideration or two directional consideration.

SALE1. Here parties are called buyer and seller.

2. Such rule is not applicable.

3. Here title will get shifted from seller to buyer.

4. The concept of Sale is applicable to both movable and immovable.

5. Sale always will be with two directional consideration.