Examine the Duties and Rights of a Bailor.

Duties of Bailor:

Duty to Disclose Defects:

The bailor is imposed by law, the duty to disclose the defects in the goods bailed. Therefore, the bailor under an obligation is required to inform those defects in the goods which may have a bearing on the decision of the bailee.

That is, those which would interfere with the use of the goods for which the goods being bailed or would expose the bailee to some risk.

The bailment of goods can be gratuitous and non-gratuitous. In case of gratuitous bailment, the bailor is required by law to disclose all the defects known to him, which would interfere with the use of goods bailed.

Also read | When is an Agency can Irrevocable?

If the defects are not disclosed then the bailor would have to compensate the bailee in case of loss suffered in case the bailor had not disclosed all the defects and because of which the bailee had to suffer loss.

On the other hand, in case of non-gratuitous bailment, that is the bailment for reward, the bailor has a duty to keep the goods in a fit condition. That is, the goods must be fit to be used for the purpose they are meant for.

Thus, in this case the bailor becomes responsible for all the defects in the goods whether known or not is considered immaterial.

Duty to Bear Expenses:

Also read | The Rights and Duties of the Finder of Goods.

The general rule states that where the bailee is not in receipt of any remuneration then the bailor is required to bear the usual expenses with regards to keeping the goods or in carrying, the goods or to have work done on them by the bailee for the bailor.

In ease the bailee has incurred any expense for the purpose of the bailment, then the bailor must repay same to the bailee. In case of non-gratuitous bailment it is the duty of the bailor is required to bear extraordinary expenses, borne by the bailee for the purpose of the bailment.

Duty to Bear Risks:

The bailor as a duty is required to bear the risk of loss, deterioration, and destruction of the things bailed, provided the bailee has taken reasonable care to protect the goods from the loss.

Also read | Define a Contract of Indemnity.

Duty to Indemnify the Bailee:

It is the duty of the bailor to indemnify the bailee with any loss suffered by the bailee with respect to any defect in the title, as the bailor was not entitled to make the bailment or to receive back the goods bailed or to give any directions regarding the goods bailed.

Duty to Receive Back the Goods:

When the bailee in accordance with the terms of the bailment returns the goods the bailor must receive them. If he refuses the goods without any reasonable reason, then the bailee may claim compensation for all the necessary and incidental expenses undertaken to keep and protect the goods from the bailor.

Rights of the Bailor:

Enforcement of bailee’s duties: It is the duty of the bailee and the right of the bailor to receive all natural accretions on the goods bailed at the time they are returned to him.

Also read | The Rules Regarding Appropriation of Payment.

Right to claim damages: The bailor may claim damages for any loss that might have been caused to the goods bailed because of the bailee’s negligence.

Right to avoid the contract: According to Section 153, if any act of the bailee is inconsistent with the terms of the bailment, the bailor may avoid the contract.

Right to claim compensation: The bailor has the right to claim compensation from the bailee if any damages are caused to the goods bailed due to the unauthorized use of the goods.

Also read | The various modes of discharge of a contract.

Right to demand return of goods: The bailor can compel the bailee to return the goods bailed when the time of bailment has expired.

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