The bailor has the following three duties:
Duty to disclose defects:
The bailor is imposed by law, the duty to disclose the defects in the goods bailed. Therefore, the bailor under an obligation is required to inform those defects in the goods which may have a. bearing on the decision of the bailee. That is, those which would interfere with the use of the goods for which the goods being bailed or would expose the bailee to some risk.
The bailment of goods can be gratuitous and non-gratuitous. In case of gratuitous bailment, the bailor is required by law to disclose all the defects known to him, which would interfere with the use of goods bailed. If the defects are not disclosed then the bailor would have to compensate the bailee in case of loss suffered in case the bailor had not disclosed all the defects and because of which the bailee had to suffer loss. On the other hand, in case of non-gratuitous bailment, that is the bailment for reward, the bailor has a duty to keep the goods in a fit condition. That is, the goods must befit to be used for the purpose they are meant for. Thus, in this case the bailor becomes responsible for all the defects in the goods whether known or not is considered immaterial.
Duty to bear expenses:
The general rule states that where the bailee is not in receipt of any remuneration then the bailor is required to bear the usual expenses with regards to keeping the goods or in carrying the goods or to have work done on them by the bailee for the bailor. In case the bailee has incurred any expense for the purpose of the bailment, then the bailor must repay same to the bailee. In case of non-gratuitous bailment it is the duty of the bailor is required to bear extraordinary expenses, borne by the bailee for the purpose of the bailment.
Duty to bear risks:
The bailor as a duty is required to bear the risk of loss, deterioration, and destruction of the things bailed, provided the bailee has taken reasonable care to protect the goods from the loss.