Rights of Bailor and Bailee

Rights of Bailor

Rights of Bailor and Bailee
Rights of Bailor and Bailee

The following are the rights of a Bailor:

1. Right to Enforce

If the bailee neglects in any one of his duties, the bailor has a right to enforce them by filing a suit against the bailee.

2. Right to Avoid the Contract

If the bailee does any act, which is inconsistent with the terms of the bailment as regards the goods bailed, the bailor can terminate the bailment.

Example: A lets a car to B for his private use only. But B used it as taxi. A can terminate the bailment.

3. Right to Return the Goods Lent Gratuitously

When the goods are lent gratuitously, the bailor can demand back the goods at any time even before the expiry of the time fixed or the achievement of the object.

Example: A, while going out of station delivered his ornaments to B for safe custody for one month. But A returned to station after one week. He may demand the return of his ornaments even though the time of one month has not expired.

However, due to the premature return of the goods, if the bailee suffers any loss, which is more than the benefit actually obtained by him from the use of the goods bailed, the bailor has to compensate the bailee.

4. Right to Get Compensation

If any third person does some injury to the goods bailed or deprives the bailee of the use of the goods, then the bailor may file a suit against the wrong-doer, and recover compensation from him.

Example: A bailed 50 bags of rice to B, a godown keeper, for safe custody. C a fraudulent man, prepared a fake delivery order for 10 bags of rice and claimed the delivery from B, the godown keeper. B believing in good faith, that 10 bags have been sold by A to C, delivered the same to C. Here A may file a suit against C to recover the rice bags from him.

Rights of Bailee

As a matter of fact, all the duties of the bailor are the rights of the bailee. In addition to that, the bailee has the following other rights also.

1. Right to Deliver the Goods to any one of the Joint Bailors

If several joint owners bailed the goods, the bailee has a right to deliver them to any one of the joint owners unless there was a contract to the contrary.

Example: A, B and C are the joint owners of a harvesting combine. They delivered it on hire to D for one month. After the expiry of one month, D may return the “combine” to any one of the joint owners namely, A, B or C.

2. Right to Deliver the Goods to Bailor without Title

If the bailor has no title to the goods, and the bailee in good faith delivers them back to or according to directions of the bailor, the bailee is not responsible to the owner in respect of such delivery.

3. Right to Apply to Court to Decide the Title to the Goods

If the goods bailed are claimed by the person other than the bailor, the bailee may apply to the court to stop its delivery and to decide the title to the goods.

Example: A, a dealer in T.V. delivered a T.V. to B for using in summer vacation. Subsequently, C claimed that the T.V. belonged to him as it was delivered only for repairs, to A and thus, B should deliver it to him. In this case, B may apply to the Court to decide the question of ownership of the T.V. so that he may deliver it to the right owner.

4. Right of Lien

The bailee has a right to exercise lien i.e., to refuse to return the goods to the bailor until his lawful charges are paid to him.