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CA Foundation Exam June 2023 » CA Foundation Study Material » Business Laws » Duties Of Bailee
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Duties Of Bailee

duties of the bailee, rights, and duties of bailor and bailee, duties and rights of bailee and bailor, duties of bailor and bailee

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Introduction

A bailment is a legal term for a situation in which personal property is entrusted to another person for safekeeping. The person who entrusts the property is known as the bailor, while the person who agrees to safeguard the property is known as the bailee.

Both parties have specific rights and duties that are set out in law. This article will provide an overview of the key duties and rights of both the bailor and bailee.

Rights and Duties Of Bailor And Bailee

The rights and duties of the bailee and bailor depend on whether the bailment is a gratuitous or non-gratuitous one. If it is ungrateful, then the bailee will not have to compensate the bailor if any damage occurs to the property while in his/her possession; but if it is non-gratuitous, then he/she will have to compensate the bailor for any damage that occurs.

The bailor and bailee have a number of duties and rights that are set out in law.

Duties of Bailee

The bailee has some duties like- taking reasonable care of the property entrusted to them. They must also act in good faith, meaning they must not do anything that would deprive the bailor of the use of their property. The duties of Bailee are following–

Duty to take reasonable care of the property

The bailee has a duty to take reasonable care of the property entrusted to them. They must also act in good faith, meaning they must not do anything that would deprive the bailor of the value or enjoyment of their property. For example, if you borrow your sister’s car, you should use it with caution and avoid any action that could damage the vehicle.

Duty to act in good faith

The bailee must also act in good faith, meaning they must not do anything that would deprive the bailor of the value or enjoyment of their property. For example, if you borrow your sister’s car, you should use it with caution and avoid any action that could damage the vehicle.

Return of property

The bailee must return the property to the bailor as soon as possible once it is no longer needed. If there is a delay, the bailee must provide an explanation for why the return has been delayed. Additionally, the bailee must return the property to the bailor once they ask for it back, known as redelivery. The bailor also has a duty not to make unauthorised use of the property or allow others to do so. For example, if you store your bicycle at your friend’s house and they lend it to another friend without your permission, this would be a breach of their duty as bailee.

Rights of Bailor And Bailee

A bailor and bailee have some rights like- Right to receive the property back from the bailee once it is no longer needed. For example, if you lend your car to your friend and they return it to you in a damaged condition, you have the right to sue them for compensation.

Right to compensation

If the property is damaged or lost while in the custody of the bailee, the bailor has a right to seek compensation from the bailee. The amount of compensation will be based on the value of the property at the time it was entrusted to the bailee. If the bailor asks for the property back before the end of an agreed period, then the bailee has a right to receive compensation for any expenses incurred or loss suffered due to having to redeliver the property.

Right to sue

The bailor also has the right to sue the bailee if they believe that the latter has not fulfilled their duties as set out in law. For example, if the bailor does not take reasonable care of the property or allows it to be damaged or lost, the bailee may bring a lawsuit against them.

The bailee can also sue the bailor if they believe that the latter has not fulfilled their duties as set out in law. For example, if the bailor does not take reasonable care of the property or allows it to be damaged or lost, the bailee may bring a lawsuit against them.

Conclusion

Bailments are an important part of our legal system, and it is important to know the rights and duties of both the bailor and bailee. If you are involved in a dispute over a bailment, it is best to seek legal counsel to ensure that your rights are protected. Both parties have specific rights and duties that are set out in law. It is important to be aware of these rights and duties so that you can ensure your property is handled safely and securely. We hope you understood the duties of the bailor and bailee as well.

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