This is a contract whereby a party referred to as Bailor delivers goods to another known as Bailee with specific instructions that the goods be dealt with in a particular manner to be returned as soon as the purpose for which they were bailed is accomplished.
Bailment involves goods and is for the most part contractual whereas possession changes hands, ownership does not. However, in certain circumstances, physical possession does not change hands since the person who becomes the bailor was in possession of the goods in some capacity. Such a bailment is referred to as a bailment by attonement.
Types of Bailment
1. Hiring e.g. Hire Purchase Agreement
2. Storage or Safe Custody of goods
3. Pledger or Pawn: – This is the use of goods as a security for a loan whereby the goods are delivered to the lender as security and retains them until the debt is fully paid. By paying the debt, the borrower reclaims the goods.
4. For repair or work to be done
5. Carriage of goods from place to place
DUTIES OF THE PARTIES
1. He is bound to deliver the goods to the bailee for purposes of the transaction
2. He must disclose any defects in the goods or in the title
3. He is bound to indemnify the bailee for loss or liability arising by reason of defects in the goods or of title
3. To take delivery of the goods, the subject matter of the bailment.
4. To deal with the goods only for the purpose for which for which they were bailed.
5. Take reasonable care of the goods.
6. Insure the goods in his custody.
7. Return the goods to the bailor as soon as the purpose for which they were bailed is accomplished
A contract of bailment terminates when the purpose for which they were bailed is accomplished or when the bailor deals with the goods in a manner inconsistent with the bailment