Bailment

Question 1

definition ( 5 elements)

Answer 1

• voluntary
• transfer (2 people)
• possession
• temporary
• movable property

Question 2

types of bailment

(6)

case = 1 locus classicus

Answer 2

Cogg bernard case came up with the following 6 type of bailment:
1. depositum

2. accomodatum
3. location et conductio
4. vadium
5. location operis
6. mandatum

Question 3

various forms that bailment can exist ( 5)

Answer 3

1. Bailment for safe custody- where property is delivered to the bailee for the purposes of safe custody.
2. Constructive bailment- bailment arises when the law imposes an obligation to the possessor of personal property to keep it safe and return it to its rightful owner. It is involuntary in nature eg a person holding a lost item.
3. Bailment for mutual benefit- a bailment for which the bailee is compensated and from which the bailor receive some additional benefit.
4. Bailment for sale- a bailment in which the bailee agrees to sell goods on behalf of the seller
5. Involuntary bailment/involuntary deposit- a bailment that arises when a person accidentally but without any negligence leaves personal property in the possession of another person. For example, leaving your phone in an Uber. the uber driver becomes an involuntary bailee until he returns it. In such cases, an involuntary bailee can be liable for conversion.

Question 4

Standard of care (6)

1 case

Answer 4

Standard of care
1. Depends on type of bailment and benefits relied upon on the relationship

2. If bailor is sole beneficiary, bailee is a gratuitous bailee= Low standard of care and liable if there is damage due to gross negligence of bailee
3. When both are benefiting, eg bailment of hire. High standard of care= Liable for ordinary negligence
4. Only bailee benefiting eg lending your car without payment. A higher standard of care= Slight negligence
5. If damages occur to the bailed goods without any fault on part of a bailee, not liable unless agreed upon
   case: BAT KENYA LTD & ANOR V EXPRESS TRANSPORTS CO LTD (1968)
6. All bailees are held to a high standard of care when exercising re-delivery to the bailor= Strict liability

Question 5

rights of the bailor (7)

Answer 5

1. right to get back the goods.
2. right to terminate the contract
3. expenses of separation
4. compensation of goods; where inseparable
5. compensation for unauthorised use.
6. compensation for delay in re-delivery.
7. right to share profit

Question 6

duties of bailor (4)

Answer 6

1. Disclose faults that bailed goods may have esp one that exposes risk to bailee
2. Repay the necessary expenses eg gratuitous bailee who incurs expenses
3. repay extra-ordinary expenses
4. Indemnify the bailee. -req to restore the bailee back to their pre-contractual position

Question 7

right of bailee (5)

Answer 7

1. Recover damages due to loss occurred due to defect bailor was aware of
2. Recover expenses incurred for the purpose of bailment
3. Recover compensation from bailor with cost incurred due to faulty title in goods
4. Right of legal action against a third party has wrongfully deprived them use of goods or caused damage
5. Right of lien over the bailed goods which the legal right tp retain goods in order to force bailor to pay the bailee the services with regards to good

Question 8

duties of the bailee (8)

1 CASE

Answer 8

1. Duty to take care of goods as if it were his own-

CASE: kingsway motors ltd v corner garage transport.

2. Duty to bear cost or expenses of separation when mixed without consent
3. Compensate bailor when mixing is inseparable
4. Return or re-deliver goods according to the bailor’s instructions. Should be met with demand of bailor
5. Returned in good time agreed by parties
6. The Indian contract imposes duty to share profits gained unless agreed otherwise.
7. no inconsistent acts
8. liability for unauthorised use of goods.

Question 9

termination of bailment (7)

Answer 9

1. Purpose has been met
2. Due to the expiry date indicated on bailment; effluxion of time
3. Death of one of the parties
4. Bailee acts in contravention to the terms, it may be terminated
5. Illegality,
6. operation of the law,
7. mutual agreement