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, he returned or otherwise disposed of according to the directions of the person delivering them. The person delivering the goods is called the ‘bailor’ and person to whom they are delivered is called the ‘bailee’.

Duties of Bailor : 

1. To disclose the known faults about the goods bailed. 

2. To bear extraordinary expenses of bailment. 

3. To receive back the goods. 

4. To indemnify the bailee, if bailee suffers due to defective title of the goods or some other reason. 

5. To pay agreed consideration to bailee.

Duties of Bailee : 

1. To take reasonable care of the goods bailed. 

2. Not to make any unauthorised use of goods. 

3. Not to mix the goods with his own goods. 

4. To return any accretion to the goods. 

5. To return the goods at the expiry of bail. 

6. To pay compensation, if goods are not returned on time.