Meaning of Bailor and His Liability
A bailor is the person who delivers goods to another (the bailee) for a specific purpose under a contract of bailment, as defined in Section 148 of the Indian Contract Act, 1872. While the bailee has duties regarding the care of goods, the bailor also bears certain liabilities. These liabilities depend on whether the bailment is for the bailor’s benefit, the bailee’s benefit, or mutual benefit. The law ensures that the bailor is responsible for delivering goods fit for the agreed purpose and for disclosing any known defects in them.
Specific Liabilities of Bailor
The liabilities of the bailor are mentioned under Sections 150–152 of the Indian Contract Act, 1872. First, the bailor must disclose all known faults in the goods; failure to do so makes him liable for any resulting damage to the bailee. Second, in a gratuitous bailment, the bailor must compensate the bailee for losses arising from hidden defects, even if he was unaware of them. Third, in a bailment for hire, the bailor is bound to ensure that the goods are reasonably fit for use. Thus, the law imposes a duty of safety and fairness on the bailor.
Importance of Bailor’s Liability
The bailor’s liability is significant because it protects the bailee from risks arising from the bailor’s negligence or concealment. It creates a balance in the contract of bailment, ensuring that both parties share responsibilities. For law students, understanding the bailor’s liability highlights the principle that contracts are not only about rights but also about duties, particularly when goods and safety are involved.
Real-Life Example
Suppose Ravi lends his friend Mohan a bike without informing him that the brakes are defective. Mohan meets with an accident due to the brake failure. Here, Ravi (the bailor) is liable to compensate Mohan for the injury, as per Section 150, because he failed to disclose a known defect in the goods delivered.
Mnemonic to Remember – “D-F-C”
To recall the bailor’s liability, think of D-F-C:
- D = Disclosure of defects (Sec. 150)
- F = Fitness for use (goods must be suitable for purpose in hire bailment)
- C = Compensation (for loss caused by hidden defects)
So, remember: “Bailor’s liability = D-F-C (Disclosure, Fitness, Compensation).”
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