Bailment
The delivery of goods by one person to another for some purpose, on a contract that they will be returned or disposed of as the deliverer directs once the purpose is accomplished (Section 148 of the Contract Act).
Explained
Section 148 of the Indian Contract Act, 1872 defines 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 deliverer is the bailor and the recipient the bailee. The essentials are delivery of goods, delivery for a purpose, a contract, and return or disposal of the same goods according to the bailor's directions.
Only movable goods can be bailed, and delivery may be actual or constructive. By the Explanation, a person already in possession of another's goods who contracts to hold them as bailee becomes a bailee though there was no fresh delivery. Because the same goods must be returned, a deposit of money in a bank, where the bank returns an equivalent sum, is not a bailment. Bailment may be gratuitous or for reward.
The bailee's central duty is in Section 151: in all cases of bailment he must take as much care of the goods as a man of ordinary prudence would take of his own goods of the same bulk, quality and value. Under Section 152, in the absence of a special contract, he is not liable for loss if he took that care. A bailee who has rendered labour or skill on the goods has a particular lien under Section 170 until paid, while Section 171 gives a general lien only to bankers, factors, wharfingers, attorneys of a High Court and policy-brokers, unless there is an express contract.
A pledge is a species of bailment: under Section 172 the bailment of goods as security for payment of a debt or performance of a promise is called pledge, the bailor being the pawnor and the bailee the pawnee. Examiners ask which element is not essential, whether the standard of care differs for gratuitous bailments (it does not under Section 151), and the difference between particular and general lien.
What the law says
A “bailment” is 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”. The person to whom they are delivered is called, the “bailee”.
Explanation.—If a person already in possession of the goods of another contracts 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.
Defines bailment, bailor and bailee
In all cases of bailment 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 own goods of the same bulk, quality and value as the goods bailed.
Standard of care required of a bailee
The bailee, in the absence of any special contract, is not responsible for the loss, destruction or deterioration of the thing bailed, if he has taken the amount of care of it described in section 151.
Bailee not liable for loss if due care taken
Where the bailee has, in accordance with 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 of them.
Illustrations
(a) A delivers a rough diamond to B, a jeweller, to be cut and polished, which is accordingly done. B is entitled to retain the stone till he is paid for the services he has rendered.
Bailee's particular lien
Bankers, factors, wharfingers, attorneys of a High Court and policy-brokers may, in the absence of a contract to the contrary, retain as a security for a general balance of account, any goods bailed to them; but no other persons have a right to retain, as a security for such balance, goods bailed to them, unless there is an express contract to that effect.
General lien of bankers, factors and others
The bailment of goods as security for payment of a debt or performance of a promise is called “pledge”. The bailor is in this case called the “pawnor”. The bailee is called the “pawnee”.
Pledge as bailment by way of security
Example
Illustration (a) to Section 170 of the Contract Act: A delivers a rough diamond to B, a jeweller, to be cut and polished. B is entitled to retain the stone till he is paid for his services.
For the exam
- Section 148: delivery of goods, for a purpose, under a contract, for return or disposal.
- Only movable goods; delivery may be constructive (Explanation to Section 148).
- Section 151: ordinary prudence standard applies in all bailments, gratuitous or for reward.
- Particular lien (Section 170) versus general lien (Section 171).
- Pledge is bailment as security (Section 172).
103 questions in the Law Maker question bank use this term. Practise Contract Law questions
Related terms
- PledgeThe bailment of goods as security for payment of a debt or performance of a promise (Section 172 of the Contract Act). The bailor is called the pawnor and the bailee the pawnee.
- GoodsUnder Section 2(7) of the Sale of Goods Act, 1930, every kind of movable property other than actionable claims and money, including stocks and shares, growing crops and things to be severed from land.
- ContractUnder Section 2(h) of the Contract Act, an agreement enforceable by law. Section 10 lists what makes an agreement a contract.
- AgentA person employed to do any act for another, or to represent another in dealings with third persons; the person represented is the principal. Section 182 of the Indian Contract Act, 1872.
- DeliveryUnder Section 2(2) of the Sale of Goods Act, 1930, the voluntary transfer of possession from one person to another. It may be actual, symbolic or constructive.
Further reading
Checked 6 November 2026. Statutory text is quoted from the Bare Acts library, taken from India Code. See the full glossary.