Duties and Right of Bailee

As part of the bailment relationship, the bailee has certain duties and rights:

Duties of Bailee

1. Take Reasonable Care: The bailee must take reasonable care of the property while it is in their possession, including protecting it from damage, theft, or loss.
2. Use the Property Only for the Purpose Intended: The bailee must use the property only for the purpose for which it was bailed, as specified in the bailment agreement.
3. Return or Dispose of the Property: The bailee must return the property to the bailor or dispose of it in the manner specified in the bailment agreement once the purpose of the bailment has been fulfilled.
4. Notify the Bailor of Known Problems: The bailee must notify the bailor of any known problems with the property, such as defects or damage, and obtain the bailor’s consent before making any repairs or alterations.

Rights of Bailee

1. Possess the Property: The bailee has the right to possess the property while it is in their custody for the purpose of the bailment.
2. Receive Compensation: The bailee is entitled to receive compensation for their services, which may include storage, transportation, or other charges specified in the bailment agreement.
3. Retain Possession for Unpaid Charges: If the bailor fails to pay the bailee for their services, the bailee may have a lien on the property and the right to retain possession of the property until the charges are paid.
4. Limitation of Liability: The bailee may limit their liability for loss or damage to the property under certain circumstances, such as through a contractual limitation of liability or statutory limitation of liability.