Gratuitous and Non-Gratuitous Bailment
Bailment: Gratuitous vs. Non-Gratuitous
1. What is Bailment? (Brief recap)
Bailment means delivery of goods by one person (bailor) to another (bailee) for some purpose, under the condition that the goods will be returned or disposed of as directed.
Governed by Sections 148 to 171 of the Indian Contract Act, 1872.
2. Gratuitous Bailment
Bailment where only one party receives benefit, and the other performs the service without expecting compensation.
It can be:
Gratuitous bailment for the benefit of the bailor: Bailee performs service for free, benefiting bailor.
Gratuitous bailment for the benefit of the bailee: Bailor delivers goods to bailee for bailee’s benefit, without compensation.
3. Non-Gratuitous Bailment
Bailment where both parties receive benefits, usually involving payment or compensation.
For example, when the bailee is paid for keeping or carrying goods.
4. Differences Between Gratuitous and Non-Gratuitous Bailment
| Feature | Gratuitous Bailment | Non-Gratuitous Bailment |
|---|---|---|
| Benefit received | Only one party benefits | Both parties benefit |
| Compensation | No compensation expected | Compensation/payment expected |
| Degree of care required | Lower standard of care | Higher standard of care |
| Liability for loss | Bailee liable only for gross negligence | Bailee liable even for slight negligence |
5. Duties of Bailee in Each Type
| Duty | Gratuitous Bailment | Non-Gratuitous Bailment |
|---|---|---|
| Level of care | Ordinary care (only avoid gross negligence) | Extraordinary care (due diligence expected) |
| Liability for loss or damage | Liable only if grossly negligent | Liable even for slight negligence |
6. Relevant Case Law
Gowar v Gurney (1862)
In this English case, it was held that in a gratuitous bailment, the bailee is liable only for gross negligence, not for slight negligence.
This case laid down the principle that standard of care depends on whether the bailment is gratuitous or not.
Kedar Nath v Gorie Mohamed (1928)
The court held that where the bailment is for reward (non-gratuitous), the bailee must take extraordinary care.
The bailee was held liable for loss caused by slight negligence.
7. Summary Table
| Aspect | Gratuitous Bailment | Non-Gratuitous Bailment |
|---|---|---|
| Benefit | Only one party benefits | Both parties benefit |
| Compensation | No | Yes |
| Level of care | Ordinary care | Extraordinary care |
| Bailee’s liability | Only for gross negligence | Even for slight negligence |
8. Examples
| Gratuitous Bailment | Non-Gratuitous Bailment |
|---|---|
| Lending your bike to a friend for free | Paying a garage to keep or repair your car |
| Letting someone store your goods for free | Hiring a warehouse for storage with payment |
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