Definition
Bailment describes a legal relationship in common law where physical possession of personal property, or a chattel, is transferred from one person to another person who subsequently has possession of the property. It arises when a person gives property to someone else for safekeeping, and is a cause of action independent of contract or tort.
Bailee
What is ‘Bailee’
An individual who temporarily gains possession, but not ownership, of a good or other property under a bailment. The bailee is entrusted with the possession of the good or property by another individual known as the bailor. This relationship is based on a contractual agreement (a bailment) between the bailor and the bailee, which specifies the terms and purpose of the change in ownership.
Explaining ‘Bailee’
While the goods are in the bailee’s possession, the bailor is still the rightful owner. However, the bailee is responsible for their safekeeping and eventual return. Typically, the bailee is not entitled to use the goods or property. A bailee can serve as the overseer of an investment portfolio for a specified time period, or can be appointed to manage a rental property in the owner’s absence. The bailee ensures the assets are kept safe until the owner of those assets is able to resume management.
Bailee FAQ
What is bailee and bailor?
What is an example of a bailment?
What are the rights of Bailee?
What is the meaning of Bailee?
What is mutual benefit bailment?
Who is a bailor?
Further Reading
- Bailment Ailment: An Analysis of the Legal Status of Ordinary Demand Deposits in the Shadow of the Financial Crisis of 2008 – heinonline.org [PDF]
- Comparative Research on Legal Duty of Trust Bailee [J] – en.cnki.com.cn [PDF]
- The role of fractional-reserve banking and financial intermediation in the money supply process: Keynes and the Austrians – link.springer.com [PDF]
- The monetary fifth column: the eurodollar threat to financial stability and economic sovereignty – heinonline.org [PDF]
- The complete mitochondrial genome of the horned lizard – www.tandfonline.com [PDF]
- The Economic Structure of Roman Property Law – www.oxfordhandbooks.com [PDF]
- Structured financial products as the instrument of financial credit assurance for the companies involved into foreign economic activities – www.richtmann.org [PDF]
- Bailee's Liability for Failure to Warn Bailor of Lack of Insurance: Source of the Duty of Care – heinonline.org [PDF]
