Section 148 of Indian Contract Act, 1872 - Bailment, Bailor and Bailee Defined
Section 148 of the Indian Contract Act, 1872 defines the legal relationship of bailment and identifies the two principal parties to it: the bailor and the bailee. The provision appears in Chapter IX of the Act, which deals with bailment.
Text and meaning of Section 148
Section 148 - "Bailment", "bailor" and "bailee" defined.
A "bailment" is the delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them. The person delivering the goods is called the "bailor". The person to whom they are delivered is called the "bailee".
Explanation. If a person already in possession of the goods of another contracts to hold them as a bailee, he thereby becomes the bailee, and the owner becomes the bailor of such goods, although they may not have been delivered by way of bailment.
What is bailment?
Bailment is a contractual arrangement involving delivery of goods by one person to another for a particular purpose. The arrangement requires that, after the purpose is completed, the goods are to be returned or otherwise dealt with according to the directions of the person who delivered them.
Who is a bailor?
The bailor is the person who delivers the goods under the bailment. Section 148 therefore uses the identity of the person delivering the goods to define the bailor.
Who is a bailee?
The bailee is the person to whom the goods are delivered under the bailment. The bailee receives possession for the agreed purpose and holds the goods subject to the terms of the bailment and the applicable provisions of the Indian Contract Act, 1872.
Essential elements of bailment under Section 148
- Goods: the arrangement concerns goods delivered by one person to another.
- Delivery: possession of the goods is delivered, or the statutory explanation applies where the person is already in possession and agrees to hold the goods as bailee.
- Purpose: the delivery is made for a particular purpose.
- Contract: the goods are held under a contractual arrangement.
- Return or disposal: after the purpose is accomplished, the goods must be returned or otherwise disposed of according to the bailor's directions.
Explanation to Section 148: prior possession can become bailment
Physical redelivery is not always necessary to create the legal relationship. The Explanation expressly covers a person who already possesses another person's goods and then contracts to hold them as a bailee. From that agreement, the possessor becomes the bailee and the owner becomes the bailor even though there was no fresh delivery by way of bailment.
Section 148 in the wider scheme of Chapter IX
Section 148 supplies the basic definitions for the bailment provisions that follow. For example, Section 150 deals with the bailor's duty to disclose faults in goods bailed, Section 151 prescribes the care to be taken by a bailee, and Section 152 addresses the bailee's liability for loss, destruction or deterioration where the required care has been taken.
Official legal source
For the authoritative statutory text, refer to the Government of India's India Code publication of the Indian Contract Act, 1872.
Quick summary
Section 148 defines bailment as delivery of goods for a purpose under a contract requiring their return or disposal according to the deliverer's directions after that purpose is completed. The person delivering the goods is the bailor and the recipient is the bailee. The Explanation also recognizes bailment where a person already possessing another's goods subsequently agrees to hold them as bailee.