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Bailor

Who is Called a Bailor?

Meaning of Bailor

A bailor is the person who delivers goods to another person (called the bailee) under a contract of bailment.
The bailor gives the goods for a specific purpose, with the condition that the goods will be returned once the purpose is completed or will be disposed of according to the bailor’s instructions.

In simple words:

"The one who gives the goods temporarily to another person for safekeeping, repair, transport, or any other purpose is called the bailor."

The definition of bailor is given under Section 148 of the Indian Contract Act, 1872.

Examples of Bailor

  1. If you give your mobile phone to a service center for repair, you are the bailor.

  2. If you hand over your luggage at a railway cloakroom, you are the bailor.

  3. If you give your car to a valet at a hotel for parking, you are acting as a bailor.

Essential Features of a Bailor

  1. Ownership or Possession:
    The bailor must have either ownership or lawful possession of the goods that are being delivered.

  2. Delivery of Goods:
    The bailor must deliver the goods to the bailee voluntarily for a specific reason.

  3. Purpose:
    There must be a lawful purpose like safekeeping, repair, or transportation.

  4. Return or Disposal:
    The goods must either be returned to the bailor after the purpose is completed or disposed of as per the bailor's instructions.

  5. Good Faith:
    The bailor should inform the bailee about any faults or defects in the goods that might cause danger or loss.

Duties of a Bailor

  1. Disclosure of Faults:
    The bailor must tell the bailee about any known faults or defects in the goods.

  2. Bear Expenses:
    If the bailment is for the benefit of the bailor (like safekeeping), the bailor must pay all the expenses.

  3. Indemnify Bailee:
    If the bailee suffers any loss because of defects in the goods, the bailor must compensate him.

  4. Accept the Goods Back:
    After the purpose is completed, the bailor must accept the goods back when offered by the bailee.

Important Point

  • In gratuitous bailment (where no money is involved), the bailor has more responsibility to compensate the bailee if anything goes wrong.

  • In bailment for reward (where money is paid), both the bailor and bailee have commercial responsibilities.

Conclusion

Thus, the bailor is the party who temporarily hands over his goods to another person for a lawful purpose, expecting the goods to be safely returned or dealt with as instructed.
The role of the bailor is very important because the entire contract of bailment begins with the delivery of goods by the bailor to the bailee.

Understanding the duties and rights of a bailor helps in preventing disputes and ensuring smooth transactions involving movable goods.


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