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 benefit 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: 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 possession, there will be no change in title.
- Bailment includes return of goods after fulfillment of purpose.
- In delivering the goods, there must be specific purpose.
Difference between Bailment and Sale
|1. Here parties are called bailer and bailee.||1. Here parties are called buyer and seller.|
|2. There must be returnable.||2. Such rule is not applicable.|
|3. There is no question of Shipping of title. Though procession goes to bailee, title rests with bailer.||3. Here title will get shifted from seller to buyer.|
|4. The concept of bailment is applicable to movable property only.||4. The concept of Sale is applicable to both movable and immovable.|
|5. Bailment may be with one directional consideration or two directional consideration.||5. Sale always will be with two directional consideration.|