The Pioneer Container
1994 · [1994] 2 AC 324
Posted By lanbuk.com
- Facts
- Cargo was consigned from the United States towards Hong Kong. The carrier sub-contracted the last stage, from Taiwan to Hong Kong. The sub- contained an exclusive clause.
- Issue
- Can a sub- be liable to the cargo owner as bailee without the owner's consent, and can the sub-bailee rely on the terms of the sub-bailment?
- Held
- The owner's consent is not a prerequisite of a bailment. A person who voluntarily takes another's goods into custody, knowing that someone other than the immediate bailee is interested, owes that person the duties of a bailee. He may rely on terms of the sub-bailment which the owner authorised, expressly, impliedly or ostensibly.
- Principle
- The essence of bailment is the bailee's voluntary possession of another's goods, not a contract with the owner. Notice of the other person's interest is what makes the assumption of responsibility voluntary.
- Why it matters
- It is the governing case on sub-bailment, on bailment without the owner's consent, and on which terms of a sub-bailment bind the owner.
Words and Latin in this note
- Bailment
- A transaction in which a bailee lawfully receives possession of the bailor's goods for a purpose. Ownership stays with the bailor. It is its own source of duties, and it does not require a contract. Open the note.
- Bailee
- The person who lawfully receives possession of goods from the bailor for some purpose, and must take care of them and return the same goods. Open the note.
For study only. By lanbuk.com. Always check current sources and consult a qualified professional.