Abstract
Bailment is one of the essential principles of the Indian Contract Act, 1872, which regulates several daily commercial and non-commercial relationships, including the temporary transfer of goods. The paper will conduct a doctrinal and correlational examination of the obligations of a bailee as enshrined in the Act under Sections 151 and 152, which set out the standard of care to be followed and the circumstances in which a bailee can be absolved of liability. Section 151 holds an obligation on the bailee, which is to take the care of a person of ordinary prudence in the same or similar circumstances, and Section 152 immunises the bailee conditionally against loss, destruction or deterioration of the goods, subject to the adherence to the duty of care prescribed in Section 151. The paper shows that these sections work complementarily and inseparably, with Section 152 justified by Section 151. The paper also draws attention to the judicial opposition to the contractual watering down of the statutory standard of care and the pressure on a bailee to establish due diligence. The paper also enumerates interpretative weaknesses in the provisions, such as a lack of illustrative guidance and explanatory clauses, and recommends legislative clarification to facilitate uniformity and certainty in application. The analysis of the legal framework has concluded that the current legal framework is operational, but its practical application depends heavily on judicial interpretation to ensure fairness and accountability in bailment relationships.