In banking law, a customer is considered as the bailor
Bailment
Bailment describes a legal relationship in common law where physical possession of personal property, or a chattel, is transferred from one person (the 'bailor') to another person (the 'bailee') who subsequently has possession of the property. It arises when a person gives property to someone else for safekeeping, and is a cause of action independent of contract or tort.
What is bailor and Bailee?
In banking law, a customer is considered as the bailor and a banker is considered as the bailee. The person/party that entrusts goods to a bailee is called a bailor.
What are the duties of a bailor?
Duty to disclose faults: –In the case of a gratuitous bailment, the bailor is expected to disclose all the defects to the bailee known by him and that can arise while using the bailed goods.
What is the difference between bailment and Bailee?
The person/party to whom goods are entrusted/delivered for a certain purpose viz. as a custody or for repair, without transferring the ownership rights, is called a bailee. The act by which goods are delivered to a bailee for a certain purpose without transfer of ownership, is called as bailment.
Who is the rightful owner of a bailable good?
While the good is in the bailee’s possession, the bailor is still the rightful owner. Various types of bailments will give the bailor the right to expect some kind of duty of care for the good by the bailee.
Who is bailor and bailee?
The person delivering the goods is called the "bailor". The person to whom they are delivered is called the "bailee'.
Is a banker is a bailee?
In banking law, a customer is considered as the bailor and a banker is considered as the bailee. The person/party that entrusts goods to a bailee is called a bailor.
What is called as bailee?
The person delivering the goods is called the 'bailor'. The person to whom they are delivered is called the 'bailee'.
Who is bailor and bailee explain their rights and duties?
As per the section 148 of the Indian Contract Act, 1872, a bailment is a contract where one person delivers goods to another person for some purpose. The person delivering the goods is the Bailor and the person receiving the goods is the Bailee.
Who is Bailee with example?
Bailees include coat check attendants, valet car services, banks, jewelers, and dry cleaners. A bailee assumes a legal and fiduciary responsibility to safeguard the bailor's property while under their care.
Who is customer of bank?
Bank Customer means any Person who as of the Closing Date has a deposit account with one of the Banks or has a Loan outstanding with one of the Banks.
What are the 3 types of bailments?
There are three types of bailments—those that benefit both parties, those that benefit only the bailor, and those that only benefit the bailee. Although the burden depends on the type of bailment, the bailee must always treat the bailor's property with a reasonable amount of care.
Is deposit in bank a bailment?
Deposit of money in a bank is not a bailment, even if it be assumed that the word 'goods' includes money. There is a distinction between bailment and deposit.
What is the duty of Bailee?
In a contract of bailment, the bailor transfers the goods to the bailee for some purpose, and the bailee is responsible for using the goods bailed according to the purpose of bailment. Section 154 of Indian Contract Act imposes liability on bailee if goods are not used authoritatively.
What are rights of bailor?
The rights of Bailor are as follows : 1) Right to claim damages if bailee makes wrongful use. 2) Right to claim proportionate share in mixed goods. 3) Right to claim return of goods or their loss. 4) Right to claim damages due to mixing up of goods.
What are the right and duties of bailor?
Duties and Rights of the BailorDuties of the bailor. Duty to disclose faults. Duty to repay bailee's expenses. Duty to indemnify the bailee. ... Rights of the Bailor. Right to enforce bailee's performance. Right to claim damages. Right to claim compensation against unauthorized use of goods.
What is the person/party that entrusts goods to a bailee called?
The person/party that entrusts goods to a bailee is called a bailor. The person/party to whom goods are entrusted/delivered for a certain purpose viz. as a custody or for repair, without transferring the ownership rights, is called a bailee.
What is the act by which goods are delivered to a bailee for a certain purpose without transfer of ownership
The act by which goods are delivered to a bailee for a certain purpose without transfer of ownership, is called as bailment. Why is the customer - the bailor and the banker - the bailee? In case of 'safe custody facility', the bank accepts responsibility of the safe custody of the sealed boxes and packets. The banker can open such box only on the ...
Do banks charge for safe custody?
Some of the occasions, bankers do not charge fees for safe custody facility for customers who have been associated with them for a long period of time or customers who are maintaining ...
Is a banker a bailee?
In such cases, the banker becomes a 'gratuitous bailee'. In other cases, where charges are levied, the banker becomes a 'bailee for reward'. ..................... The law of bailment is explained in Section 148 of the Contract Act, 1872.
Who is Bailor?
Meaning of Bailor: – A bailor is a person who temporarily gives the possession of goods or property but not the ownership under the bailment. The temporary possession of the goods or property is given by the bailor to another person who is known as bailee.
Who is Bailee?
Meaning of Bailee: – A bailee is the person who temporarily gets the possession of the goods and property but not the ownership. The bailee is also known as the custodian, and he gets the possession of the goods or property by another person who is known as the bailor.
What is a Lien?
Meaning of Lien: – A lien is a claim or legal right against assets that are typically used as collateral to satisfy a debt. A lien could be established by a creditor or a legal judgement. A lien serves to guarantee an underlying obligation, such as the repayment of a loan.
How lien work?
A lien provides a creditor with the legal right to seize and sell the collateral property or asset of a borrower who fails to meet the obligations of a loan or contract. The property that is the subject of a lien cannot be sold by the owner without the consent of the lien holder.
What are the types of liens?
There are many types of liens and lien holders. Below are some of the most common liens: –
What are the rights of the bailor?
Right to Claim Compensation Against the Unauthorized Use of Goods: – If any of the third person, does some injury to the goods bailed or deprive (stop) the bailee to use bailed goods, in such a case bailor has right to file the suit against the wrong-doer and to get compensation from him.
What are the duties of the bailor?
Duty to Disclose Faults: – In the case of a gratuitous bailment, the bailor is expected to disclose all the defects to the bailee known by him and that can arise while using the bailed goods. A non-gratuity carries a major responsibility on the part of the bailor as in this case bailor will also be liable even if he does not know about the defects.
