What is Bailment

Bailment is a legal relationship in which the owner of goods (the Bailor) delivers goods to another person (the Bailee) for a specific purpose under a contract, while retaining ownership. The Bailee takes possession of the goods but is obligated to return them or otherwise dispose of them according to the Bailor’s instructions once the purpose is accomplished.

Key Features of Bailment Delivery of Goods

1. The Bailor delivers goods to the Bailee voluntarily.
2. Purpose Goods are delivered for a specific purpose agreed upon by both parties.
3. Possession, Not Ownership The Bailee possesses the goods but does not own them.
4. Ownership remains with the Bailor.
5. Return or Disposal The Bailee must return the goods or dispose of them according to instructions after fulfilling the purpose.
6. Contractual Relationship Bailment arises through a contract, which can be express or implied.

Examples of Bailment Leaving clothes with a dry cleaner Depositing goods in a warehouse Giving a vehicle to a valet Lending a book to a friend