Bailment Contracts A Contract where one party delivers goods to the other upon return basis to fulfil a specific purpose is called bailment contract. It includes two parties namely; bailer and bailee. The person who is delivering the goods is called bailer and the person to whom goods are delivered, is called bailee. Types of Bailment Contracts The bailement contracts are classified into Gratuitous bailments and Non – Gratuitous bailments. Difference between Bailment and Sale

1. BAILMENT CONTRACTS

2. WHAT IS A CONTRACT
 The word Contract was derived from a Latin word Contractum. The word contractum means
drawn together. The following are definition with regard to Contract.
 Definition of Contract
 Agreement creating and defining obligations between the parties is called Contract. -
Salmond
 Thus Contract is defined as agreement. To form an agreement, two elements are needed,
namely;
 Offer and
 Acceptance.

3. BAILMENT CONTRACTS
 A Contract where one party delivers goods to the other upon return basis to fulfil a specific
purpose is called bailment contract. It includes two parties namely; bailer and bailee. The
person who is delivering the goods is called bailer and the person to whom goods are
delivered, is called bailee.
 Example: A has handed over his fan to B for the purpose of repairs. It is bailment contract. A is
bailer and B is bailee. Similarly X has handed over his dress Y for the purpose of washing. It is
also bailment Contract where X is bailer and Y is bailee.

4. TYPES OF BAILMENT CONTRACTS
 The bailement contracts are classified into Gratuitous bailments and Non – Gratuitous
bailments.
 Gratuitous Bailments: If there is only one directional consideration, it is called Gratuitous
bailment. In here, the bailment contract is for the benifit of either the bailer or the bailee only.
 Example 1: Mr. A, while going to abroad, has handed over his gold to this friend namely B for
Safe custody. Here bailer only is getting benefited.

 Example 2: Y has taken Scooter for X who is his friend for 1 day. Here only bailee is being
benefited.

5. NON – GRATUITOUS BAILMENTS:
 Non – Gratuitous bailments: If there is two directional consideration it is called Non-
Gratuitous bailment. In here, the bailment contract is for the benefit of both parties.
 Example: X has handed over his dress to B who is owner of a laundry for washing. At a charge
of Rs. 10/-. Here both parties are being benefited.

6. FEATURES OF BAILMENT
 In case of bailment, as there is delivery of goods, there will be change in
procession.
 Though there is change in procession, there will be no change in title.
 Bailment includes return of goods after fulfilment of purpose.
 In delivering the goods, there must be specific purpose.

7. DIFFERENCE BETWEEN BAILMENT AND SALE
BAILMENT
1. Here parties are called bailer and bailee.
2. There must be returnable.
3. There is no question of Shipping of title. Though
procession goes to bailee, title rests with bailer.
4. The concept of bailment is applicable to movable
property only.
5. Bailment may be with one directional consideration
or two directional consideration.
SALE
1. Here parties are called buyer and seller.
2. Such rule is not applicable.
3. Here title will get shifted from seller to buyer.
4. The concept of Sale is applicable to both movable
and immovable.
5. Sale always will be with two directional
consideration.