Bailment Definition
A bailment is a legal relationship between two parties, in which one party (the ‘bailee’) holds personal property in trust for the other party (the ‘bailor’). The bailor retains ownership of the property, but the bailee has temporary possession and control of it. Bailments are created by express or implied agreement between the parties.
The most common type of bailment is created when someone leaves personal property with another person for a specific purpose, such as storage, repair, or cleaning. For example, if you take your car to a mechanic for repairs, the mechanic is acting as your bailee. You are the bailor and retain ownership of your car, but the mechanic has custody of it and is responsible for taking care of it while it is in his or her possession.
Other examples of bailments include:
– leaving luggage with a hotel concierge
– storing furniture in a self-storage unit
– consigning goods to a retailer for sale
In each of these cases, there is an agreement between the bailor and bailee that creates a bailment relationship. The bailee has possession of the property but does not own it, and must take care of it according to the terms of the agreement.
