Rights and Duties of Bailer

Rights of Bailer
  1. If bailee does not take care and destruction of goods takes place, bailer can claim compensation.
  2. If bailee uses the goods for un-authorized purposes, bailer has the right to claim compensation.
  3. Bailer has the right to claim return of goods.
  4. Bailer has right to claim not only delivered goods but also accruals on goods if any.
  5. In case where bailee has mixed the goods and they are of sufferable nature, bailer can claim cost of separation from bailee.
  6. In case where the goods are of insufferable nature, bailer has right to claim compensation.
  7. Bailer has right to repudiate the Contract of bailment whenever he wants but, by doing so, if bailee comes across any suffering, bailer has to compensate.
Duties of Bailer
  1. Duty to dispose faults: Bailer should disclose faults  present in goods at  the time of making delivery. Faults are of two types namely ; Known faults and Un-known faults. On the other hand bailments also are of two types namely Gratuitous bailment and Non-Gratuitous bailment. In case of gratuitous bailment, bailer is liable to compensate for bailee injuries arising out of known faults. In Gratuitous bailment, bailer is not answerable to un-known faults. In case of Non-Gratuitous bailment, bailer is answerable to both known faults and Un-known faults.
  2. Duty to contribute for expenses: Bailer should Contribute for expenses incurred by bailee. In case of Gratuitous bailment, bailer need not contribute for ordinary expenses and extra ordinary expenses or to the contributed by bailer. In case of Non-Gratuitous bailment, bailer should contribute for both ordinary expenses and extra ordinary expenses.
  3. Duty with regard to defective title: In case where bailer has delivered the goods with defective title, the bailee may come across suffering from the side of true owner due to bailers defective title. In such a case bailer with defective title should compensate bailee.
  4. Duty to Indemnify: Principal of indemnity operates between bailer and bailee, where bailer becomes implied indemnifier and bailee becomes implied indemnity holder. So bailer has duty to indemnify bailee.
  5. Duty to take the Goods back: After fulfillment of purpose bailee returns the goods to bailer. Then bailer should take them back. If bailer refuses to take the goods back, bailer has to compensate bailee.