Bailor for Reward

 

Bailor for Reward

A Bailor for Reward is a person who delivers goods to another (the bailee) for a specific purpose under a contract where payment or compensation is involved. This is a non-gratuitous bailment.

Key Duties of a Bailor for Reward (Section 150):

Unlike a "Gratuitous Bailor" (who only has to disclose known faults), a Bailor for Reward has a higher degree of responsibility:

• Disclosure of All Faults: The bailor is responsible for any damage arising from faults in the goods, whether they were aware of those faults or not.

  • Example: If you rent a car from a travel agency and the brakes fail due to a hidden defect, the agency (Bailor for Reward) is liable for your injuries even if they didn't know the brakes were faulty.

• Duty to Reimburse: The bailor must pay the bailee for any necessary expenses incurred for the purpose of the bailment.

• Indemnity: The bailor must indemnify the bailee for any loss caused by the bailor's lack of title to the goods.