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Chapter IX - Of Bailment

Section 151

Section 151: Bailee’s duty of reasonable care

A bailee must take the care an ordinarily prudent person would take of comparable goods in similar circumstances.

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Need advice on Section 151?

This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.

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Statutory text

Bare law

In all cases of bailment the bailee is bound to take as much care of the goods bailed to him as a man of ordinary prudence would, under similar circumstances, take of his own goods of the same bulk, quality and value as the goods bailed.

Rule and business relevance

The benchmark considers the goods’ bulk, quality and value and applies in all cases of bailment. Storage, handling and security should reflect those features.

Limits and related provisions

This is an objective prudence standard, not merely whatever care the particular bailee happens to take of personal property. Special transaction laws may also apply.

Hypothetical business example

Hypothetical example: A custodian stores valuable precision equipment. Appropriate care must reflect its value and vulnerability, rather than treating it like low-value scrap.

Practical decision flow

Record the goods’ condition, quality and value.

Assess the risks and precautions appropriate to similar circumstances.

Keep evidence of the handling, storage and incident response.

Check the applicable legal framework

This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.

Practical checklist

Do

  • Record the goods’ condition, quality and value.
  • Assess the risks and precautions appropriate to similar circumstances.
  • Keep evidence of the handling, storage and incident response.

Avoid

  • This is an objective prudence standard, not merely whatever care the particular bailee happens to take of personal property. Special transaction laws may also apply.

Glossary

Ordinary prudence
The reasonable-care benchmark described by the provision.
Comparable goods
Goods of the same bulk, quality and value.

Frequently asked questions

Does the standard apply to unpaid bailment?

The section says all cases of bailment.

Is actual loss itself proof of lack of care?

The required care must be assessed on the evidence and circumstances.

Does the nature of the goods matter?

Yes. Bulk, quality and value are expressly relevant.

Need help applying this provision to your situation?

Contact Bizeneed

Last updated 10 October 2026