A bailor is someone who gives away the possession but not ownership or we can say delivering of goods. A bailor always gives temporary possession than ownership. Thus, when the bailor gives the possession of the good or property to another individual, known as the bailee.

On the other hand, who gains the possession is the bailee, of good and property but not ownership. Thus, the receiver is the bailee.

After the accomplishment of the purpose, the Bailee needs to return these goods to the Bailor or dispose of them according to the directions of the Bailor.

Section 148 of The Indian Contract Act, 1872 says that a bailment is a contract where one person delivers goods to another person for some purpose.


  1. Right to enforce Bailee’s performance: For some specific purposes only the delivery of the goods are been delivered to the bailor, and where the case lies for the non-gratuitous bailment, the bailor has an elemental right to achieve that purpose or obtain the benefit through the latter.
  2. Right to claim damage: If any loss occurs in case of bailment, the bailor can claim the damages for the loss that occurred.
  3. Right to claim compensation against unauthorized use of goods: If some injury has been done to the bailed goods by the third person, or somehow deprives them to used for the bailor, then a suit can be filed against the wrongdoer for compensation from him.


A voluntary delivery of goods is to say as Bailment.

  1. Properly take care of goods: As an ordinary man a Bailee should take care of the goods, of the same value, quality and quantity also. A bailee cannot be held liable if due care of the goods were taken off. However, if any happening related to acts of God or public enemies takes place then also the bailee cannot be held liable.
  2. Not to make unauthorized use: The bailee cannot make use of unauthorized use of goods that are been bailed, and in case if he does then the bailor can terminate the bailment easily. Bailor can also claim damages for goods that have been unauthorized.
  3. Goods should be kept separately: The goods shall be kept separately by the Bailee. He cannot mix the goods under the bailment of his related goods. But in case he does then the bailor shall compensate the bailor for the loss of the goods.


  1. Reasonable care: When a case of bailment arises then the bailee is bound to take as much care of the goods bailed to him as an ordinary and prudent man of sound mind.
  2. Not so set adverse title: The goods are been hold by the bailee, so it has to return to him. Thus, he cannot have the right to own as there is no ownership in it.


According to section 170 of The Indian Contract Act, 1972 the bailee has a lien on the particular product he receives under the bailment where his skill or labor applies and can keep the goods under his possession till he gets paid off.

For example, A gives his car in the garage for service to B, and B promises to give his car back in two days. After two days the car was ready but he has a right to retain his car until A pays him the charges.

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