An arrangement whereby goods are transferred from one person (the bailor) to another (the bailee), but with no transfer of title. A bailment is created when, for example, one leaves his car at a garage for repairs. Note that such an arrangement may give rise to a repairer’s lien if the owner of the car fails to pay the garage for the agreed-upon repairs.
A bailment is a legal relationship in which one person (the bailor) gives possession of personal property to another person (the bailee) for a specific purpose, with the understanding that the property will be returned or disposed of in accordance with the bailor’s instructions. The bailee has a duty to take reasonable care of the property while it is in their possession, and may be held liable for any damage or loss that occurs as a result of their negligence. The bailor retains ownership of the property throughout the bailment, and the bailee has no right to use or dispose of the property in any way that is inconsistent with the terms of the bailment.
- Bail.
- The handing over of control over, or possession of, personal property by one person, the bailor, to another, the bailee, for a specific purpose upon which the parties have agreed.
n. 1) the act of placing property in the custody and control of another, usually by agreement in which the holder (bailee) is responsible for the safekeeping and return of the property. Examples: bonds left with the bank, autos parked in a garage, animals lodged with a kennel, or a storage facility (as long as the goods can be moved and are under the control of the custodian). While most are “bailments for hire” in which the custodian (bailee) is paid, there is also “constructive bailment” when the circumstances create an obligation upon the custodian to protect the goods, and “gratuitous bailment” in which there is no payment, but the bailee is still responsible, such as when a finder of a lost diamond ring places it with a custodian pending finding the owner. 2) the goods themselves which are held by a bailee. Thus, the “bailor” (owner) leaves the “bailment” (goods) with the “bailee” (custodian), and the entire transaction is a “bailment.
A bailment is a legal relationship in which one person (the bailor) gives possession of personal property to another person (the bailee) for a specific purpose, with the understanding that the property will be returned or disposed of in accordance with the bailor’s instructions. The bailee has a duty to take reasonable care of the property while it is in their possession, and may be held liable for any damage or loss that occurs as a result of their negligence. The bailor retains ownership of the property throughout the bailment, and the bailee has no right to use or dispose of the property in any way that is inconsistent with the terms of the bailment.
Bailment refers to the legal relationship where one person (the bailor) transfers possession of personal property to another person (the bailee) for a specific purpose, with the understanding that the property will be returned or disposed of as agreed upon.
There are three main types of bailment: bailment for the sole benefit of the bailor, bailment for the sole benefit of the bailee, and bailment for the mutual benefit of both parties.
The bailor has a duty to provide the bailee with property that is safe and free from defects, disclose any known defects, and compensate the bailee for any expenses incurred during the bailment.
The bailee has a duty to take reasonable care of the property, use it only for the agreed-upon purpose, and return it to the bailor in the same condition as received (unless otherwise agreed).
In certain cases, a bailor may demand compensation for a bailment, especially if the bailee benefits from the use of the property or if the bailment results in damage or loss to the bailor.
Yes, a bailee can be held liable for damage or loss to the property if they fail to exercise reasonable care or if they use the property in a manner not agreed upon.
Yes, a bailment can be terminated before the agreed-upon time if both parties mutually agree to terminate it or if one party breaches the terms of the bailment.
Generally, a bailee cannot sell or transfer the property to a third party without the bailor’s consent, unless it is necessary to do so in order to fulfill the purpose of the bailment.
In most cases, a bailor can demand the return of the property before the agreed-upon time, unless there is a valid reason for the bailee to retain possession, such as unpaid fees or outstanding obligations.
If the property is lost or damaged during the bailment, the bailee may be held liable for compensation, unless the loss or damage was caused by circumstances beyond their control or if the bailor assumed the risk of loss or damage.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 30th April 2024.
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