LLB220 Study Guide - Midterm Guide: Bailment
SUB BAILMENT AND EXAM ANSWER STEPS
SUB BAILMENT
Where there is a bailment by the original bailor to the bailee, and then a further bailment of
those goods by the bailee (The Pioneer Container)
-The sub-bailee owes duties to the bailor and the bailor can bring an action against the
sub-bailee
-BUT
-original bailor will be bound by conditions of the sub-bailment
-where s/he expressly or impliedly consented to the bailee making a sub-bailment in
those conditions
-and the conditions are not so unusual or unreasonable that they would fall outside the
scope of the bailor’s original consent and would have been within reasonable
contemplation.
-Bailee remains liable to the bailor, despite the existence of a sub-bailment
Sub-bailment with authority of the bailor: The bailee will not be liable in negligence,
unless it was negligent in choosing a sub-bailee
Sub-bailment without authority of bailor: Usually the bailee will be liable in negligence
because will have breached the duty to retain possession of the goods (ie, if not permitted to
sub-bail) – Edwards v Newland and Co (1950) 2 KB 534
-In either case (with or without authority) the sub-bailee is liable to the bailee for loss
-And the sub-bailee is also liable to the bailor (see previous)
-But the bailor cannot recover double damages against both bailee and sub-bailee, so
must choose one
Personal Property Securities Act 2009 (Cth)
oImposes registration requirements – so certain types of bailor must register
their interest in bailed property, in order to assert their rights to it in the event
of dispute
oDoes not apply to:
People not ordinarily in the business of bailing goods (bailor/bailee)
Bailments of less than one year’s duration
Gratuitous bailments
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Where there is a bailment by the original bailor to the bailee, and then a further bailment of those goods by the bailee (the pioneer container) The sub-bailee owes duties to the bailor and the bailor can bring an action against the sub-bailee. But original bailor will be bound by conditions of the sub-bailment. Bailee remains liable to the bailor, despite the existence of a sub-bailment. Sub-bailment with authority of the bailor: the bailee will not be liable in negligence, unless it was negligent in choosing a sub-bailee. In either case (with or without authority) the sub-bailee is liable to the bailee for loss. And the sub-bailee is also liable to the bailor (see previous) But the bailor cannot recover double damages against both bailee and sub-bailee, so must choose one. People not ordinarily in the business of bailing goods (bailor/bailee) Bailments of less than one year"s duration.
