The rights of Bailor under a contract of bailment are started as follows:
1. Rights of taking back the goods bailed:
The bailor has right to take back the goods bailed as soon as the purpose of bailment is completed. If the bailee defaults in so returning, the bailor has right to receive compensation.
2. Right in case of unauthorized use of goods:
The bailor is entitled to terminate the contract of bailment if the bailee makes the unauthorized use of the goods bailed.
3. Right to goods bailed before stated period:
The bailor may get back his goods before the time stated in the contract of bailment with the consent of the bailee.
4. Right to Dissolution of contract:
The bailor may dissolve the contract if the conditions of bailment are disobeyed by the bailee.
5. Right to Gratuitous goods:
The bailor has right it terminate the contract of gratuitous bailment at any time even before the specified time, subject to the limitation that where such a termination of bailment causes loss in excess of benefit, the bailor must compensate the bailee.
6. Right in share of Profit:
The bailor has share in the increase or profit gained from the goods bailed if there is provision in the contract.
Right of Bailee
1. Right to recover damages:
A bailee has right to recover damages from the bailor if he suffers any loss due to defects of the goods bailed.
2. Right to receive compensation:
A bailee is entitled to receive compensation from the bailor for any loss resulting from the defect in the bailor’s title.
3. Right of Legal Action:
A bailee may take necessary legal action against the person who wrongfully deprives him of the use of goods bailed or does them any injury (Sect. 180)
4. Right to recover Bailment Expenses:
Bailee is entitled to be reimbursed for all legitimate expenses incurred for any purpose of bailment.
5. Right of Lien:
Where the bailee has rendered any service for the purpose of bailment, he has right to retain such goods bailed until he receives due remuneration for his services in absence of contract to the contrary. (Sect. 170)
6. Right of Indemnity:
The bailee has right to receive the amount of indemnity from bailor for any loss which he may sustain by reason that the bailor was not entitled to make the bailment or to receive back the goods, or to give directions respecting them. (Sect. 164)
Duties and Liabilities of Bailor
1. To disclose Facts:
The important duty of the bailor is to disclose the faults in the goods bailed in so for as they are known to him; and if he fails to do that he will be liable to pay such damages to the bailee as may have resulted directly from the faults. (Sect. 150)
X hires a carriage of Y. The carriage is unsafe, though Y is not aware of it, and X is injured. Y is responsible to X for the injury.
2. Payment of Extraordinary Expenses:
Section 158 provides that all the necessary expenses incurred by the bailee in connection with the bailment, must be paid by the bailor.
3. To Indemnity Bailee:
The bailor is bound to pay the bailee for any loss which the bailee may sustain by reason that the bailor was not entitled to make the bailment. (Sect. 164)
4. Warning to the Bailee:
When the things are is danger i.e explosive goods, the bailor must give extraordinary warning to the bailee.
Duties and Responsibilities of Bailee
1. To take care of goods bailed:
The bailee is bound to take as much care of the goods entrusted to him as a man of ordinary prudence. (Sect. 151)
2. To avoid the inconsistent act:
A contract of bailment is voidable at the option of the bailor, if the bailee does any act with regard to the goods bailed, inconsistent with the conditions of the bailment (Sect. 153)
3. The authorize use of goods:
If the bailee makes any unauthorized use of the goods bailed, he is liable to make compensation to the bailor for any damage arising to the goods from or during such use of them. (Sect. 154)
4. Not to mix bailor’s goods:
The bailee is bound to keep the goods of the bailor separate from his own where the mixture without the consent of the bailor is inseparable, the bailor is entitled to be compensated by the bailee for the loss of the goods. (Sect. 155, 156, 157)
5. To return the goods:
It is the duty of the bailee to return, or deliver the goods bailed according to the bailor’s directions. (Sect. 160)
6. Responsibility in case of default:
If the goods are not returned, delivered or tendered due to default of the bailee, he is responsible to the bailor for any loss of the goods from that time. (Sect. 161)
7. To return any profit from the goods:
The bailee is bound to deliver to the bailor, or according to his directions, any increase or profit which may have accrued from the goods bailed. (Sect. 163)
8. Not to set up adverse title:
The bailee has no right to deny the bailor’s title or set up against the bailor his own title or the right of a third party.