There are many cases of bailment in our day-to-day life. For example, in the case of laundry, we give our clothes for getting washed. Once they are washed, they are to be returned to us. We place the other person in temporary possession of our clothes for a specific purpose and there is an express or implied understanding between the two to return the good once the purpose has been fulfilled. A bailment is a special contract defined under section 148 of the Indian Contract Act, 1872.

It is derived from a French word i.e. "bailer" which means "to deliver". The etymological meaning of bailment is "handing over" or "change of possession of goods". By bailment, we mean delivery of goods from one person to another for a special purpose on the contract that they shall reimburse the goods on the fulfilment of the purpose or dispose of them as per the direction of the bailor. The person who delivers the goods is known as the bailor. And the person to whom the goods are given is known as Bailee. And the property bailed is known as Bailed Property.

This article explains the bailment concept and definition. Bailment is a special type of contract found in Sections 148-181 of the Indian Contract Act 1872. Section 148 of the Indian contract act defines bailment as " the delivery of 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 directions of the person delivering them."

Bailment means a relationship wherein the personal property of a person temporarily becomes the possession of another. This sort of relationship can happen because of a variety of reasons. For example giving a thing for repairing, leaving ornaments in the possession of a neighbour when you go somewhere else, delivering garments with dry-cleaning even leaving a cycle or car in a privately owned stand are examples of bailment.

Contract of bailment involves the transfer of possession of the good from the bailor to the bailee for a specific purpose and both, the bailor and the bailee, have been confronted with some rights and duties which are necessary for them to follow whenever seem suitable. Also, for the contract of bailment to be valid, all the essential features need to be fulfilled. Moreover, bailment of goods is different from the sale of goods as bailment is involved with the transfer of possession while the sale is involved with the transfer of ownership.

Bailment

Bailment consists of the delivery of goods, i.e., movable property, by one person, who is generally the owner thereof, to another person for some purpose. The goods are to be returned to their owner after the purpose is accomplished, or they are to be disposed of according to the directions of the person delivering them. For example, when you take a fan on hire, or give your suit for dry-cleaning, or give a watch for repairs, or give a parcel to a carrier for being transported to some place, there is bailment in each case.

Justice Blackstone defines Bailment as delivery of goods in trust, upon contract, either expressed or implied, that the trust shall be faithfully executed on the part of the bailee'. Bailment can also be described as 'the delivery of goods to another person for a particular use'. Only 'goods' can be bailed and thus, only movable goods can be the subject matter of bailment. Current money or legal tender cannot be bailed. Deposition of money in a bank is not bailment as money is not 'goods' and the same money is not returned to the client. But the coins and notes that are no longer legal tender and are more or less just objects of curiosity, then they can be bailed.

In a contract of bailment, the person who delivers the goods is called the "bailor", and the person to whom the goods are delivered is called the "bailee".
Section 148 of the Indian Contract Act, 1872, defines bailment asunder:

148. Bailment', bailor' and 'bailee' defined-A "bailment" as the delivery of 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 directions 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".

It may be noted here that a contract doesn't need to be entered for a bailor and bailee relationship to be formed. Just like in any other form of contract, consideration also forms part of bailment. It is normally given in the form of money.

Essentials Of Bailment:

1. Delivery of goods for some purpose.
   "Delivery means the transfer of possession of the goods from one person to another. Delivery need not always be actual. It may sometimes be a constructive or symbolic delivery. Section 149 recognizes other than actual delivery also. It provides:
   
   "The delivery to the bailee may be made by doing anything which has the effect of putting the goods in the possession of the intended bailee or of any person authorized to hold them on his behalf."
   
   Transferring of the key of the godown may be deemed to be delivery of the goods. Explanation to Section 148 gives an illustration of constructive theory According to this provision: "If a person already in possession of the goods of another contract to hold them as a bailee, he thereby becomes the bailee, and the owner becomes the bailor of such goods, although they may not have been delivered by way of bailment."
    
2. Return of the goods after the purpose is achieved, or their disposal according to the bailor's directions.
   The delivery of the goods, in a bailment, is only for some purpose, eg., for safe custody, carriage, repair, etc. When the purpose is accomplished, the goods are to be returned or otherwise disposed of according to the directions of the person delivering them.
   
   As stated by Section 148, the goods "shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them." This element distinguishes bailment from other transactions like the sale of goods, or gifts, where the property in the goods is transferred and they are not to be returned in any case. In every bailment, the same thing is to be returned either in the same form or in an altered form.
   
   When the cloth is given for being stitched into a suit, gold for being converted into ornaments, or wheat for being converted into flour, there is bailment in each case. When the money is deposited in a bank, it is not bailment, because the banker is not to return the same money to the depositor."
    

Modes Of Delivery (Sec.149)

1. Actual delivery:
   Transfer of physical possession of goods from one person to another. Here, the bailor hands over the physical possession of the goods to the bailee.
   
   Example: A's watch is broken. When he leaves his watch at the showroom for repair, he has given actual delivery of possession of goods to the showroom.
    
2. Constructive delivery:
   If A person is already in possession of the goods of the owner. Such a person contracts to hold the goods as a bailee for a third person. Then the such person becomes the bailee, and the third person becomes the bailor. Constructive delivery is an action that the law treats as the equivalent of actual delivery.
   
   It can be difficult to deliver intangible In constructive delivery, the physical possession of the goods may not be handed over. The possession of the goods may remain with the bailor with the consent or authorization of the bailee. In constructive delivery, action on part of the bailor merely puts the bailee in the position of power concerning the bailed goods. The bailor gives the bailee the means of access to taking custody of it, without its actual delivery.
   
   Example: A has rare coins in a locked safe-deposit box. Delivery of a safe deposit box is not possible. When he hands over the keys of the box to B, it is taken as constructive delivery for purpose of bailment.
   
   Section 149 specifically deals with the constructive delivery of goods. It states that anything done which has the effect of putting the goods in the possession of the intended bailee or any other person authorized to hold them on his behalf is to be treated as constructive delivery of the goods.

Bailment May Be Classified On Two Bases I.E., Reward And Benefit.

Bailments classified based on reward are as follows:

1. Gratuitous Bailment:
   A Bailment made without any Consideration for the benefit of the bailor or the benefit of the bailee is called Gratuitous Bailment. In simple words, A bailment with no consideration is a Gratuitous bailment. When there is no consideration involved in the contract of bailment it is called gratuitous bailment.
   
   For example, when you lend your cycle to your friend so that he can have 3 rides or when you borrow his books to read, it is a case of gratuitous bailment because no exchange of money or any other consideration is involved. Neither you nor your friend would be entitled to any remuneration here. No hire charges are paid by the bailee, and No custody charges are paid by the bailor.
    
2. Non-Gratuitous Bailment:
   Non-Gratuitous is a bailment for reward. It is for the benefit of both the bailor and bailee. A contract of bailment which involves some consideration passing between bailor and bailee is called a non-gratuitous bailment. For example, if your friend hired a cycle from a cycle shop or you borrowed a book from a bookshop on hire, this would be a case of non-gratuitous bailment. Hire charges are paid by bailee, or Custody charges are paid by the bailor.

Based on Benefit based on the benefits accruing to the parties, the contract of bailment may be divided into the following types:

1. Bailment for the exclusive benefit of the bailor:
   In this case, the bailor delivers his goods to a bailee for safe custody without any benefit/ reward. It is called " the bailment for the benefit of the bailor". This is the case where a contract of bailment is executed only for the benefit of the bailor, and the bailee does not derive any benefit from it.
    
2. Bailment for the exclusive benefit of the bailee:
   In this case, Bailor delivers his goods to a bailee without any benefit for his use, it is called "the bailment for the exclusive benefit of the bailee". This is the case where the contract of bailment is executed only for the benefit of the bailee and the bailor does not derive any benefit from the contract.
    
3. Bailment for the mutual benefit of bailor and bailee:
   In this case, goods are delivered for consideration, both the bailor and bailee get benefit and hence it is called the bailment for the benefit of the bailor and bailee. In this case, both the bailor and the bailee derive some benefit from the contract of bailment.

Essential Elements Of Bailment

1. Parties:
   In a contract of Bailment, a minimum of two parties are necessary namely the Bailor and the Bailee. Bailor is the person delivering the goods Bailee is the person to whom the goods are delivered. Goods refer to movables.
    
2. Agreement:
   In a contract of Bailment, there must be an agreement between the Bailor and the Bailee. However, the agreement may be expressed (i.e. oral or in writing) or implied (i.e. inferred from the circumstances).
   
    
3. Return of Goods:
   In bailment, there is only a temporary transfer of possession. Therefore, the goods must be returned or disposed of according to the instructions of the Bailor at the end of the bailment.
    
4. Purpose:
   In case of bailment, the possession of the goods must be transferred for some purpose. The purpose may be expressly stated.
    
5. Effecting transfer of possession:
   Only possession is transferred from the bailer to the Bailee i.e the physical commodity.
    
6. No transfer of ownership:
   Although the commodity or goods may be in the possession of the Bailee, the Bailor continues to be the owner.
    
7. Delivery of Goods:
   In a contract of bailment, there must be the delivery of goods. i) The delivery must be voluntary.

Duties Of Bailee

A Bailee Has To Observe The Following Duties:

1. Duty to take reasonable care of the goods bailed (Sees. 151-152)
   
   1. In the Absence of any Contract:
      The bailee is bound to take as much care of the goods bailed to him as a man of ordinary prudence would, under similar circumstances take of his goods of the same bulk, quality and value as the goods bailed. If he has taken care as an ordinarily prudent person, he is not responsible for the loss, destruction or deterioration of the goods bailed.
       
   2. In the case of a Special contract:
      The Bailee is bound to take as much care as provided by the term of the contract. If he has taken the amount of care described in the special contract, he is not responsible for the loss, destruction or deterioration of the goods bailed. It is to be noted that the bailee is bound to take care of whether the bailment is gratuitous or non-gratuitous.
       
2. Duty not to make unauthorized use of the goods bailed (Secs. 153 & 154)
   The bailee must use the goods bailed according to the conditions of the bailment. If he does not use the goods bailed according to the conditions of the bailment, he is liable to make compensation to the Bailor for any damage (due to any reason) arising to the goods from or during such use of them.
    
3. Duty not to mix bailor's goods with his goods (Secs. 155-157)
   Case: In case of mixture with Bailor's consent [Sec.155] In case of the mixture without the Bailor's consent when the goods can be separated [Sec. 156]. In case of the mixture without the Bailor's consent when the goods cannot be separated [Sec. 157].
   
   Provision: The bailor and the bailee shall have an interesting proportion to their respective shares in the mixture thus produced. The property in the goods remains with the parties respectively, but the bailee is bound to bear the expenses of separation or division and any damage arising from the mixture. The bailor is entitled to be compensated by the bailee for the loss of the goods.
    
4. Duty to return the goods on the fulfilment of the purpose (Secs. 160 & 161, 165-167)
   The bailee must return or deliver the goods according to the Bailor's directions without demand, after the accomplishment of purpose or after the expiry of the period of bailment. If he fails to do so, he is responsible to the bailor for any loss, destruction or deterioration of the goods from that time.
    
5. Duty to deliver to the bailor increase or profit on the goods bailed (Section 163)
   In the absence of any contract to the contrary, the bailee is bound to deliver to the bailor, or according to his directions, any increase or profit which may have accrued from the goods bailed
    
6. Duty not to set up any Adverse Title -The bailor is bound to prove that the other person had a right to goods as against the bailor if he delivers them to a person other than the bailor.

Sections 168 and 169 confer certain rights on the finder of goods. The provisions are as under:

1. Right of lien. (Section 168):
   According to Section 168, a finder of goods has no right to sue the owner for trouble and expense voluntarily incurred by him to preserve the goods and to find the owner. He has, however, the right of a particular lien in respect of those goods. He may retain the goods against the owner until he receives compensation for the trouble and expense voluntarily incurred by him to preserve the goods and to find the owner.
    
2. Right of claiming the reward, if announced by the owner. (Section168):
   It has been noted above that the finder has the right to retain the goods until he is paid compensation for the trouble and expense voluntarily incurred by him to preserve the goods and find the owner. In addition to that, where the owner has offered a specific reward for the return of goods lost, the finder may sue for such a reward, and also may retain the goods until he receives them.
    
3. Right to sell the goods found. (Section 169):
   The finder of the goods has also been given the right to sell the goods found by him under certain circumstances mentioned in Section 169. Such a right is available to the finder of the lost goods when the following conditions are satisfied:
   
   1. If the owner of the goods cannot with reasonable diligence be found; or if he refuses, upon demand, to pay the lawful charges of the finder; and
   2. When the thing is in danger of perishing or losing the greater part of its value; or when the lawful charges of the finder in respect of the thing found, amount to two-thirds of its value.

Rights Of Bailee

The duties of a bailor are the rights of a Bailee, and a bailee can enforce his rights against the bailor by suing him in case of default.

The various rights of a bailee are as follows:

1. Right to claim damages [sec. 150]:
   
   1. In case of a gratuitous bailment:
      If the bailor does not disclose the defect in the goods which are known to him and the bailee suffers some loss due to such defects, the Bailee has the right to claim damages.
       
   2. In case of a non-Gratuitous bailment:
      If the bailee suffers any loss due to any defect in the goods, the bailee has a right to claim damages.
       
2. Right to claim reimbursement expenses [sec. 158]:
   
   1. In the case of Gratuitous Bailment:
      The Bailee has the right to claim reimbursement of all the necessary expenses (whether ordinary or extraordinary) that he has already incurred for bailment.
       
   2. In the case of Non-Gratuitous Bailment:
      The Bailee has a right to claim reimbursement of all the extraordinary expenses which the Bailee has already incurred for bailment.
    
3. Right to be indemnified in case of premature termination of gratuitous bailment [Sec. 159]:
   The bailee has a right to be indemnified in case the loss arising due to premature termination of the gratuitous bailment exceeds the benefits derived by him.
    
4. Right to recover the loss in case of bailor's defective title [Sec. 164]:
   The bailee has a right to be indemnified in case he suffers any loss because of the defective title of the bailor.
    
5. Right to recover the loss in case the bailor refuses to take the goods back [Sec.164]:
   The bailee has a right to be indemnified in case he suffers any loss because Bailor refuses to take the goods back.
    
6. Right to deliver goods to any one of the joint bailors [Sec. 165]:
   In the absence of any contract to the contrary, the bailee has a right to deliver back the goods to any one of the joint owners or may deliver the goods back according to the directions of one joint owner without the consent of all.
    
7. Right to deliver the goods to bailor in case of bailor's defective title [Sec. 166]:
   If the Bailor has no title to the goods, and the bailee, in good faith, delivers them back to, or according to the directions of the bailor, the bailee is not responsible to the owner in respect of such delivery.
    
8. Right to particular lien [Sec. 170]:
   Where the bailee has, by the purpose of the bailment, rendered any service involving the exercise of labour or skill in respect of the goods bailed, he has, in the absence of a contract to the contrary, a right to retain such goods until he receives due remuneration for the services he has rendered in respect to them.

Rights Of A Bailor

The duties of a Bailee are the rights of a Bailor and the Bailor can enforce his rights against the Bailee by suing him in case of a default.
The various rights of a Bailor are as follows:

1. Right to claim damages in case of negligence [Sec. 152]:
   If the Bailee has not taken reasonable care (in the absence of any special contract) or special care ( in case of a special contract to that effect), the Bailor has a right to claim damages for the loss, destruction or deterioration of the goods bailed.
    
2. Right to terminate the contract in case of unauthorised use [Sec. 153]:
   If the Bailee does any act in respect of goods bailed, which is inconsistent with the conditions of the bailment, the Bailor has a right to terminate the contract of bailment.
    
3. Right to claim compensation in case of unauthorised use [Sec. 154]:
   If the Bailee does not use the goods bailed according to the conditions of the bailment, the Bailor has a right to claim compensation from Bailee for any damage arising to the goods from or during such use of them.
    
4. Right to claim separation of goods in case of unauthorised mixture [Sec. 156]:
   If the Bailee, without the consent of the Bailor, mixes Bailor's goods with his goods and the goods can be separated, the Bailor has a right to claim his goods after separation.
    
5. Right to claim compensation in case of an unauthorised mixture of goods which cannot be separated [Sec. 157]:
   If the Bailee, without the consent of the Bailor, mixes Bailor's goods with his goods and the goods cannot be separated, the Bailor has a right to claim compensation from Bailee for the loss of the goods.
    
6. Right to demand the return of goods [Sec. 160]:
   The Bailor has a right to demand the return of goods after the accomplishment of the purpose or after the expiry of the period of bailment.
    
7. Right to claim compensation in case of unauthorised retention of goods [Sec. 161]:
   If the Bailee does not return or deliver the goods according to the Bailor's directions, after the accomplishment of purpose or after the expiry of the period of bailment, the Bailor has a right to claim compensation for any loss, destruction or deterioration of the goods from that time.
    
8. Right to demand accretion to goods [Sec. 163]:
   In the absence of a contract to the contrary, the Bailor has a right to demand any increase or profit which may have accrued from the goods bailed

Duties Of Bailor:

The Various Duties Of A Bailor Are As Follows:

1. Duty to disclose defects [Sec. 151]:
   
   1. In the case of Gratuitous Bailment:
      The Bailor must disclose all the known defects in the goods - - which materially interfere with the use of them, or - Expose the Bailee to extra-ordinary risks. Effect of Non-Disclosure - If the Bailor does not disclose such defects and the Bailee suffers some loss due to such defects, the Bailor is liable to Bailee for such loss.
       
   2. In case of Non-Gratuitous Bailment:
      The Bailor must disclose all the faults whether known to him or not. Effect of Non-Disclosure- If Bailee suffers any loss due to any defect in the goods, the Bailor is liable to Bailee for such loss whether he knows those defects or not.
       
2. Duty to bear expenses [Sec. 158]:
   
   1. In the case of Gratuitous Bailment - The Bailor must repay to the Bailee all the necessary expenses ( whether ordinary or extraordinary) that the Bailee has already incurred for bailment.
   2. In the case of Non-Gratuitous Bailment - The Bailor must repay to the Bailee all the extraordinary expenses which the Bailee has incurred for Bailment. It is to be noted that ordinary expenses are to be borne by Bailee.
       
3. Duty to indemnify the bailee in case of premature termination of gratuitous bailment [Sec. 159]:
   A gratuitous bailment may be terminated by the Bailor at any time even though the bailment was for a specified time or purpose. The Bailor must indemnify the Bailee in case the loss arising due to premature termination of the bailment exceeds the benefits derived by the bailee.
    
4. Duty to indemnify the bailee against the defective title of the bailor [Sec. 164]:
   The Bailor is responsible to the Bailee for any loss that the Bailee may suffer because of the defective title of the Bailor.
    
5. Duty to receive back the goods [Sec. 164]:
   The Bailor must receive back the goods when the Bailee, by the terms of bailment, returns the goods to him. If the Bailor refuses to receive back the goods, he must repay to the Bailee all the expenses which the Bailee has incurred for the safe custody of goods.
    
6. Duty to bear the risk of loss [Sec. 152]:
   The Bailor must bear the risk of loss of goods provided the Bailee has taken all reasonable steps to protect the goods from loss.

Identification Of Contract Of Bailment In Day-To-Day Life:

1. Handing over the keys:
   We frequently pass on the keys to numerous gadgets to specific people. For instance, while we skip on our house keys or the keys of a locker at our residence to any neighbour, t induces the settlement of bailment among the events, making one the bailor and the other the bailee. Even the act of turning in the keys of a bicycle or a motorcycle can set off the connection of bailment.
    
2. Parking lots:
   Parking masses may be both paid and unpaid. If the parking plenty is unpaid, then it will be a gratuitous bailment for the bailor. In that case, the owner will become the bailor and the proprietor of the parking zone turns into the Bailee. However, if the car parking zone provider is paid, then it turns into the same time beneficial bailment for the events. The bailor gives attention to economic phrases which make the bailee liable to shield the item of bailment.
    
3. Repair or service:
   bailment for restore offerings can amplify a plethora of goods from cars to machines. All the products that are difficult to regular wear and tear are a challenge to bailment on behalf of the bailor for repairing.
    
4. Lending items for use:
   A contract of bailment which is beneficial only to the Bailee is also of the nature of gratuitous bailment. In this case, the bailment is beneficial to Bailee. For E.g. when a friend lends another friend a bike to be used for some time or a girl lends another girl her jewellery to be worn for some time.

Termination Of Bailment

A bailment is ended when its purpose has been achieved when the parties agree that it is terminated, or when the bailed property is destroyed. A bailment created for an indefinite period is terminable at will by either party, as long as the other party receives due notice of the intended termination. Once a bailment ends, the bailee must return the property to the bailor or possibly be liable for conversion.

Termination of bailment means the bailment comes to end and the legal relationship of the parties no longer remains. There are various circumstances under which the contract of bailment is terminated.

A Bailment Is Terminated In The Following Ways:

1. On the expiry of a specified period:
   If the bailment is for a specific purpose, the bailment terminates as soon as the purpose is fulfilled.
    
2. On the accomplishment of a specific purpose:
   If the bailment is for a specific purpose, the bailment terminates as soon as the purpose is fulfilled.
    
3. Inconsistent act with the terms:
   If the act of bailee is inconsistent with the terms and conditions of bailment, the bailor can terminate the bailment.
    
4. On the death of either party:
   A contract of gratuitous bailment and personal nature may be terminated on the ground of the death of either party. But, the contract of non-gratuitous bailment may not be terminated, the liability falls on their legal representatives.
    
5. On the destruction of subject matter:
   If the original condition of the bailed goods does not exist or is destroyed, the contract of bailment is automatically terminated, because the purpose will not be fulfilled or the performance of the contract is impossible.

A contract of bailment is terminated in the following cases:

1. On the Expiry of the term: Where the bailment is for a specific period, it terminates on the expiry of that time.
2. On the Fulfilment of the Object: The bailment terminates as soon as the object for which the goods were bailed has been fulfilled.
3. On Inconsistent Act: If the bailee inconsistently uses the goods as to the terms of the contract, the bailment terminates.
4. On the Destruction of the Goods Bailed: When the goods bailed are destroyed or become incapable of use for bailment due to the change in its nature, the bailment is terminated,
5. Gratuitous Bailment: In the case of gratuitous bailment, the bailment can be terminated by a notice from the owner to the bailee provided the termination does not cause inconvenience to the bailee.
6. On the Death of the Bailor or the Bailee: A gratuitous bailment terminates on the death of the bailor or the bailee.

Law relating to termination of bailment is discussed in Sees. 153 and 162. However, these sections are not exhaustive.

Hence ordinary rules regarding discharge or termination of contracts will also apply in the following cases:

1. When the period or purpose is over:
   In case the bailment is for a specific period or purpose, it is terminated on the expiry of that period or the completion of the purpose.
    
2. When the bailee makes unauthorized use of the goods:
   In case the bailee makes unauthorized use of the goods bailed, the bailment is voidable at the option of the bailor.
    
3. When the subject matter is destroyed or becomes illegal:
   In case the subject matter is destroyed or becomes illegal, the bailment is terminated.
    
4. At the will of the bailor:
   Where the bailment is gratuitous, it can be terminated merely at the sweet will of the bailor. However, the termination should not cause loss to the bailee over the benefit derived by him. In case the loss exceeds the benefit derived by the bailee, the bailor must compensate the bailee for such a loss (Sec. 159).
    
5. When the bailor or bailee dies:
   A gratuitous bailment is terminated by the death of the bailor or bailee.

Case Laws:

1. Sunder Lal v. Ram Sarup, AIR 1952 All 205
   A wooden shop was hired under a written agreement that the shop will be returned in the same condition, and the hirer will be liable for any loss or damage to it. The shop was burnt by the mob during the communal riots in the city. It was held that since the destruction of the shop was due to no negligence on the part of the hirer, he was not liable for the loss.
    
2. Anil Mehra v. Bank of Maharashtra AIR 2003 P H 11, II (2003) BC 570
   It has been held that mere hiring of a bank locker would not result in a contract of bailment. There is no exclusive possession delivered to the bank and hence there is no question of bailment. Moreover, the bank does not know the content of the locker, the plaintiff alone knows about that. If the bank is looted and the hirer of the locker alleges any loss, the bank cannot be held liable for the same.
    
3. Kaliaporumal Pillai v. Visalakshmi (1938) AIR 1938 Mad 32
   A lady took her old jewels to a goldsmith for being melted and converted into new jewels. Every evening she used to receive the half-made jewels, put the same into a box and lock the same. She allowed the locked box to remain on the premises of the goldsmith but kept the key in her possession. One night the jewels were stolen. It was held that there was no bailment as she had not handed over the possession of the jewels to the goldsmith, and, therefore, the goldsmith could not be made liable for the loss.

Suggestions
Since the Indian Contracts Act of 1872 has not defined this issue, and the court decisions in the above-mentioned cases were not similar, the law commission of India happened to address this issue

However, the case of what has been described as a quasi-contract of bailment should be provided for in a separate section stating that the bailor and Bailee in such cases, must, so far as may be, perform the same duties

The several essentials of a contract will not be present in a quasi-contract since the primary reason for its enforcement is to obviate the wrongful gain of any party over another

That in all kinds of bailments, whether or not arising from a contract, the parties should perform the same duties and be subjected to the same liabilities and responsibilities as the essence of bailment

Conclusion
The bailee has to perform according to the obligations laid down in the contract of bailment and as per the law of the land. He is being inconsistent or negligent while performing his obligation or duty would make him liable under various provisions of law. In each contract of law, he has certain uniform or fixed obligations to comply with, and he cannot part with those basic obligations even if a contract does not provide for any such obligations.

These obligations are the essence of a bailment contract. The obligations might differ depending on the facts but there are certain duties which are implied, and reasonable care is to be taken by the bailee. The bailee's responsibility towards the goods bailed can be increased by way of providing provisions in that regard but it cannot be lowered down, i.e., he cannot repudiate his responsibility. Bailment is different from licence and sale.

There are five important duties of a bailor as we have discussed above. A contract of bailment may be terminated by an act of parties or by operation of Law. Contract of bailment involves the transfer of possession of the good from the bailor to the bailee for a specific purpose and both, the bailor and the bailee, have been confronted with some rights and duties which are necessary for them to follow whenever seem suitable. Also, for the contract of bailment to be valid, all the essential features need to be fulfilled.

References
Bibliography:

• Indian Contract Act by Dr R.K Bangia (Publisher- Allahabad Law Agency, Edition- 15th edition)