The following are the liabilities and duties of Bailor. (Section 27 of Nepal Contract Act, 2056)

• 3.2.1 Duty to disclose known defects of goods:

The Bailor has duty to disclose the known defects of goods bailed to the Bailee. Known measures necessary for the safe custody should be disclosed otherwise the Bailor will be responsible for the loss caused by the defects of the bailed goods.

3.2.2 Duty to repay necessary expenses:

 The Bailor is responsible to bear or reimburse the extraordinary expenses of goods .e.g. medical treatment of the sick animal.

• 3.2.3 Duty to indemnify bailee:

For any loss suffered by the Bailee, by reason of the fact the Bailor was not entitled to bailed goods because of the defective title, in such case the Bailor has duty to indemnify the Bailee for this loss.

• 3.2.4 Duty to receive back the goods:

It is the duty of the Bailor to receive back the goods when the Bailee returns them after the time of expiration of bailment or the purpose of bailment has been accomplished.

 Rights and duties of Bailee

 A Bailee is a person to whom the goods are delivered for specific purpose or for specific period of time. During the period he has actual possession over the goods bailed, being a Bailee, he has some rights against his Bailor and he is bound some duties towards the Bailor. The rights and duties of Bailee are given below:

Rights of Bailee

•  4.1.1 Enforcement of bailor's duties:

The duties of the Bailor are rights of Bailee. And the Bailor has to fulfill the rights of Bailee as his duty these are as follows.

• Right to claim damages for loss arising from the undisclosed faults in the bailed goods. (Section 27.2 )

• Right to claim reimbursement for extra-ordinary expenses incurred in the bailed goods.(Section 33)

• Right to indemnity for any loss suffered by him by reason of defective title of the Bailor to the bailed goods.(Section 27.3)

• Right to claim compensation for expenses incurred for the safe custody of the goods if the Bailor has wrongfully refused to take delivery of them after the term of bailment is goods. (Section 29.1.2 )

• 4.1.2 Rights to deliver goods to one of several joint Bailor. (Section 29.3 of NCA, 2056)

If there are several bailor, bailee can deliver goods to one of several joint bailor.

• 4.1.3 Right to lien:

The right to possession of the property or goods belonging to another until some debt of claim is paid is called the right of lien. The Bailee may enjoy the right of special lien to the bailed goods.

• 4.1.4 Right to deliver goods in good faith to the untitled Bailor:

The Bailee may deliver the bailed goods to his Bailor, he should not be responsible to the real owner of the goods.

• 4.1.5 Right of general lien:

A Bailee can keep any kind of goods of the same Bailor in his possession until the full payment of necessary charges.