June 6, 2021

Different Types of Bailment

Bailment is a relationship in which one person temporarily gives his personal property in the possession of another without transferring ownership of that personal property. Delivering a bike or any other article for repair, or leaving a scooter at a stand, delivering silver to an ornament  maker for making ornaments, giving clothes to a laundry are some examples of  relationship of bailment. Section 148 of the Indian Contract Act ,1872 defines this term as “A bailment is the delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them.” It is also very important to understand that if a person already has the goods of another and contracts to hold them as a bailee, he becomes the bailee and the owner of the goods becomes the bailor, even if the commodities were not given by way of bailment.

Parties of bailment

The parties involved in bailment are called bailor and bailee. The person who delivers the goods is called the bailor and the bailee is referred to as a person to whom the bailor delivers the goods. For instance Z lends a bike to Y to be returned after a week. There is a contract of bailment  wherein Z is bailor and Y bailee.

Types of bailment

Bailment can be classified on the basis of benefit as well as on the basis of reward. 

Further on basis of benefit bailment can be further classified into following types

•)Exclusive benefit of the bailee

When a bailor delivers his personal property to a bailee without any benefit for himself it is known as bailment for the exclusive benefit of the bailee. For example X lends Y his book for

reading so here only Y who is bailee is benefited.

•) Exclusive benefit of the bailor 

When a bailor delivers his goods to a bailee  without any benefit or reward it is known as the bailment for the benefit of the bailor.  For example J, agrees to look after K’s pet

while he is out of station. So here only K who is the bailor is benefited.

•) Benefit of both bailor and bailee

When both the bailor and bailee get benefit it is known as the bailment for the benefit of both bailor and bailee. For example X hires furniture

from Y by payment of hire charges so here

both X who is bailor and Y who is bailee are benefited.

Further on the basis of reward bailment can be classified as

•) Gratuitous bailment

Bailment without any charges or reward is called gratuitous bailment. For instance X lends

his book to his friend Z.

•) Non-gratuitous bailment

Bailment for some charges or reward is known as non gratuitous bailment. For instance X

gives his mobile phone to Y, a technician.

Y gets paid for the job.

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