Section 151 of the Indian Contract Act, 1872: Care to Be Taken by Bailee

Section 151 lays down the basic standard of care that a bailee must exercise over goods entrusted to him. It forms part of Chapter IX of the Indian Contract Act, 1872, dealing with bailment.

Meaning of Bailment, Bailor and Bailee

Under Section 148, bailment broadly involves delivery of goods by one person to another for a purpose, under a contract that the goods will be returned or otherwise dealt with according to the directions of the person delivering them when that purpose is accomplished. The person delivering the goods is the bailor, and the person receiving them is the bailee.

Section 151: Statutory Rule

Care to be taken by bailee.
In all cases of bailment, the bailee must take the degree of care of the goods that a person of ordinary prudence would take, in similar circumstances, of his or her own goods of the same bulk, quality and value.

The provision therefore uses an objective standard of ordinary prudence. The required care depends on the circumstances and on the nature, bulk, quality and value of the goods. Section 151 does not make the bailee an insurer of the goods merely because they are in the bailee's possession.

How Section 151 Works

The central question is whether the bailee exercised the care that an ordinarily prudent person would exercise over comparable property belonging to that person. Relevant circumstances may include the nature and value of the goods, foreseeable risks, storage or security arrangements, and the circumstances in which the goods were held.

Relationship with Section 152

Section 152 complements Section 151. In the absence of a special contract, a bailee is not responsible for loss, destruction or deterioration of the thing bailed if the bailee has taken the amount of care described in Section 151. The two provisions should therefore be read together when considering liability for loss or damage.

Related Duties in Bailment

The bailee's duty of care operates alongside other bailment provisions. Section 153 addresses acts inconsistent with the conditions of bailment, while Section 154 concerns unauthorized use of bailed goods. Sections 160 and 161 deal with return of goods and responsibility where goods are not duly returned.

Practical Example

If valuable goods are entrusted to a bailee for safekeeping, the bailee should use precautions that an ordinarily prudent owner of goods of comparable value and character would use in similar circumstances. Whether the statutory standard has been met is determined from the facts of the particular bailment.

Legal note: Section 151 states the general statutory standard of care. Liability in an individual dispute can also depend on the terms of the bailment, Section 152 and other applicable statutory or contractual provisions.

Official Text

The current central Act and the text of Sections 148 to 154 can be verified from the Government of India's India Code copy of the Indian Contract Act, 1872.