Meaning of Bailment : The word ‘bailment’ is derived from the French word ‘bailer’ which means to deliver. Sec. 148 defines bailment as the delivery of the 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 direction of the person delivering them. The person delivering the goods is called the ‘bailor’ and the person to whom they are delivered is called the ‘bailee’.

Important Features of Bailment : 

1. The bailment is considered only with moveable goods. 

2. In contract of bailment, it is only possession of the goods which passes from the bailor to the bailee and not ownership. 

3. Bailment is done for some purpose. 

4. It is agreed between the bailor and the bailee that as soon as the purpose is achieved, the goods shall be returned or disposed off according to the direction’s of the bailor. 

5. Money deposited in a bank account is not the contract of bailment, as bank does not provide guarantee to pay the amount in the same coins / notes, but if a person keeps valuables, bonds, etc. it is a bailment contract. 

6. If inspite of the bailee’s reasonable care, goods are damaged or destroyed in any way, the bailee is not liable for the loss. 

7. Bailments are of two types :

• Gratuitous bailment, where no consideration passes between the bailor or the bailee.
• Non-gratuitous bailment, where some consideration passes between the bailor and the bailee.

8. Duties of Bailee : 

• To take reasonable care of the goods bailed,
• Not to make any unauthorised use of goods, 
• Not to mix the goods bailed with his own goods, 
• Not to set up adverse titles, 
• To return any accretion to the goods.

9. Duties of Bailor : 

• To disclose the known faults about the goods bailed  
• To bear extraordinary expenses of bailment 
• To receive back the goods 
• To indemnify the bailee, if the bailee suffers due to defective title of the goods or some other reason 
• To pay agreed consideration to the bailee.