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

Bailor's Rights 

Under the Indian Contract Act, 1872, the rights of a bailor are essentially the same as the duties of a bailee. Here are the key rights of a bailor:

 1) Enforcement of Bailee's Duties 

• The bailor has the right to ensure that the bailee fulfills all their duties.
• For example, when the bailee returns the bailed goods, they must also return any natural accretions to those goods. This is a duty of the bailee and a right of the bailor.

 2) Right to Claim Damages 

• The bailor has the inherent right to claim damages for any loss caused to the bailed goods due to the bailee's negligence (as per Section 151 of the Indian Contract Act).
• If the bailee fails to take proper care of the goods, the bailor can seek compensation for the loss incurred.

 3) Right to Avoid the Contract 

• If the bailee acts in a manner that is inconsistent with the terms of the bailment regarding the bailed goods, the bailor has the right to terminate the contract.

 4) Right to Claim Compensation 

• The bailor can claim compensation if any damage occurs to the bailed goods due to unauthorized use by the bailee.
• If the bailee mixes their own goods with the bailor's goods without authorization, causing loss, the bailor can also claim compensation (as per Sections 154, 155, and 156).
• For instance, if A lends his car to B for personal use, but B uses it as a taxi, A can avoid the contract (as per Section 153).
• If the bailee does not adhere to the contract terms or acts negligently, the bailor has the right to rescind the contract (as per Section 153).
• The bailor can terminate the bailment agreement if the bailee uses the bailed goods in a manner that violates the contract terms. For example, if the bailor lends a tonga for personal use, but the bailee uses it for carrying passengers.

 5) Right to Claim Compensation for Goods 

• If the bailee mixes the bailor's goods with others without consent, and the goods cannot be separated, the bailor can seek reasonable compensation from the bailee for their goods.

 6) Right to Claim Compensation for Unauthorized Use 

• If the bailee uses the bailed goods in a manner not agreed upon in the bailment contract, the bailor is entitled to compensation for any damages arising from such unauthorized use.

 7) Right to Claim Compensation for Delay 

• The bailee is responsible for returning, delivering, or tendering the goods to the bailor at the agreed time.
• If the bailee fails to do so, the bailor can claim compensation for any loss, destruction, or deterioration of the goods due to the delay.

 8) Right to Get Back the Goods 

• The bailor has the right to retrieve the bailed goods as soon as the purpose of the bailment is fulfilled.
• If the bailee fails to return the goods, the bailor is entitled to reasonable compensation from the bailee.

 9) Right to Deny Return of Goods 

• The bailor can compel the bailee to return the bailed goods when the bailment period expires or the purpose of bailment is accomplished.
• In gratuitous bailment, the bailor can demand the return of goods before the agreed time.

 10) Right to Share Profit 

• If the contract stipulates, the bailor has the right to share any profit earned from the bailed goods with the bailee.

 11) Expenses of Separation 

• If the bailee mixes the bailor's goods with others without consent, the bailor can recover from the bailee the expenses incurred for separating their goods from the others.