Indian Contract Act Section 164 — Bailor’s responsibility to bailee

CHAPTER IX OF BAILMENT

Commercial / Corporate

Summary

The bailor is responsible to the bailee for any loss the bailee suffers because the bailor was not legally entitled to make the bailment in the first place, or was not entitled to take the goods back, or was not entitled to give instructions about the goods. In simple terms, if the bailor’s lack of legal right to do any of these things causes the bailee to lose money or property, the bailor must compensate the bailee for that loss.

Official Text

The bailor is responsible to the bailee for any loss which the bailee may sustain by reason that the bailor was not entitled to make the bailment, or to receive back the goods, or to give directions respecting them.