A bailee’s lien is a legal right that allows a bailee to keep the goods that they are holding until they are paid for the services they have provided.
The bailee’s lien is a common law lien, which means that it is created by the law and does not require any express agreement between the bailor and the bailee.
The bailee’s lien can be used to secure payment for any charges that the bailee has incurred in connection with the bailment, such as storage fees, repair costs, or transportation costs.
The bailee’s lien is not a general lien, which means that it can only be used to secure payment for charges that are directly related to the bailment.
The bailee’s lien must be enforced within a reasonable time after the charges have been incurred. If the bailee does not enforce the lien within a reasonable time, the lien may be lost.
MCQs on Bailee’s Lien
- Which of the following is not a charge that can be secured by a bailee’s lien?
- Storage fees.
- Repair costs.
- Transportation costs.
- Interest on the charges.
- Answer: Interest on the charges. Interest on the charges cannot be secured by a bailee’s lien.
- The bailee’s lien is not a general lien. What does this mean?
- This means that the bailee’s lien can only be used to secure payment for charges that are directly related to the bailment.
- The bailee’s lien must be enforced within a reasonable time after the charges have been incurred. What is considered a reasonable time?
- This will vary depending on the circumstances, but it is generally considered to be a few months.
- If the bailee does not enforce the lien within a reasonable time, the lien may be lost. What happens if the lien is lost?
- The bailee will no longer have the right to keep the goods until they are paid for the charges.