Posted February 1, 2014 by advocateguru in Learning Centre


A bailment is a contract of transaction where one person in a contractual relationship delivers goods to another person for some purpose, upon a contract that they are, when the purpose is accomplished to be returned or otherwise disposed of according to the directions of the person delivering them.

The person who delivers the goods is called the Bailor and the person to whom they are delivered is called the Bailee. The transaction is called a Bailment.Bailment is a voluntary delivery of goods for a temporary purpose.

There are two types of Bailment i.e. Gratuitous Bailment and Bailment for reward. So, now let us simultaneously understand what these two concepts are.

  • Gratuitous Bailment: A gratuitous Bailment is one where no amount of remuneration is to be provided for the Bailor and Bailee. These can also be known as services without remuneration. These services are free of costs. For example: when a person gives his pet say dog to his neighbour in lieu of keeping a check on them, then this service is without any charge or free of costs. It may again to be for exclusive benefit of the Bailee. e.g., where you lend your book to a friend or yours for a week. In neither case any charge is made.A gratuitous bailment terminates by the death of either the Bailor or the Bailee.
  • Bailment for reward: These types of bailment are in favour of both the bailor and the bailee. Here, one party in a contractual relationship i.e. Bailor provides the service and get some reward say compensation for the same while the other party i.e. Bailee gets the services for it. For example: Neeta Bus started bus services to its customers. So, here the Bailor i.e. Neeta Bus is getting the reward for the services delivered to its passengers i.e. the Bailee.