Responsible Bailment

Bailment, Responsible 

(Russian, khranenie otvetstvennoe), in Soviet civil law, a type of obligation under bailment that arises by force of law when a socialist organization—a purchaser or consignee—refuses acceptance of a demand for payment or refuses acceptance of goods judged defective by reason of not conforming to appropriate standards, technical specifications, or prototypes. Moreover, the supplier may transfer goods to the purchaser under responsible bailment if the latter systematically withholds payment or does not settle accounts for machines and equipment because of financial control by a bank. Responsible bailment is regulated by the civil codes of the Union republics, by the decree of the Council of People’s Commissars of the USSR of Aug. 17, 1931, and by statutes concerning the delivery of goods intended for production technology (arts. 37, 56, 61, 71, 84) and the delivery of goods for individual consumption (arts. 35, 56, 62, 74,86).

The purchaser or consignee must notify the supplier by telegram within 24 hours of receiving goods for responsible bailment. The supplier must dispose of the delivered goods within five days of receiving such notification or within ten days of receiving a claim for defective goods. If the supplier invokes responsible bailment, he has the right to dispose of the delivered goods, but he is not obligated to do so.

Goods accepted for responsible bailment may only be used after payment is made. If the supplier has not disposed of the goods within 30 days of receiving notification, or within ten days of receiving a claim for defective goods, the purchaser or consignee has the right to dispose of the goods after having first used any opportunity to sell them locally.