Rights of Bailee | Law of Contracts - CLAT PG PDF Download

Bailee's Rights 

When a bailor fails to fulfill their duties, the bailee can enforce their rights by taking legal action against the bailor. The following are the rights of a bailee:

 1) Right to Claim Damages: 

• If the bailor fails to disclose defects in the goods and the bailee suffers a loss, the bailee can sue the bailor for damages. For example, if A hires a carriage from B, and the carriage is unsafe without B's knowledge, causing injury to A, B is liable for A's injury (Section 150).

 2) Right to Claim Reimbursement: 

• In non-gratuitous bailment, the bailee can recover all necessary expenses incurred for achieving the purpose of bailment from the bailor. In gratuitous bailment, the bailee can recover extraordinary expenses from the bailor (Section 158).

 3) Right to Recover Losses: 

• The bailee has the right to recover all losses suffered due to the bailor's lack of entitlement to make the bailment, receive the goods back, or give directions regarding the goods (Section 164).

 4) Right to Deliver Goods to Any One of the Joint Bailors: 

• If the goods are owned and bailed by multiple persons, the bailee has the right to deliver the goods back to any one of the joint owners, unless there is a contrary agreement (Section 165).

 5) Right to Deliver Goods to the Bailor Even if His Title is Defective: 

• If the bailor's title is defective and the bailee, in good faith, returns the goods to the bailor or according to the bailor's directions, the bailee is not liable to the true owner for such delivery (Section 166).

 6) Right to Remuneration: 

• When goods are bailed to the bailee, they are entitled to receive remuneration for the services rendered. However, in the case of gratuitous bailment, the bailee does not receive any remuneration.

 7) Right to Recover Compensation: 

• If the bailor lacks the capacity to contract for bailment, causing loss to the bailee, the bailee has the right to recover compensation from the bailor (Section 168).

 8) Right to Lien: 

• If the bailee has rendered services involving labor or skill to the bailed goods and the bailor has not made lawful payments, the bailee has the right to retain the goods until they receive remuneration for the services rendered. This right is known as the bailee's lien (Section 170).

 9) Right to Suit Against a Wrongdoer: 

• If a third party deprives the bailee of the use of bailed goods, either the bailee or the bailor can take legal action against the third party (Section 180).