What is a bailment?

What does bailment mean in legal documents?

Bailment is a legal term that comes into play when you hand over your property to someone else for a specific reason, but with the understanding that they have to give it back to you later. Imagine you're going on a trip and you leave your car with a friend to take care of while you're gone. You haven't given them the car to keep; you expect it back when you return. In this scenario, you've created a bailment.

In a bailment, the person who temporarily takes control of the item is called the 'bailee' and the original owner is called the 'bailor'. The bailee has to make sure the item is kept safe and isn't damaged or lost while it's in their care. They're not allowed to use the item unless the bailor says they can. So if your friend starts using your car as their own without your permission, they're not respecting the rules of bailment.

The bailee's responsibility to look after the item can vary. If you're paying them, they have to take really good care of it, just like a parking garage has to keep your car safe until you come back. But if they're doing you a favor and not getting anything in return, they just have to avoid being careless. And what if the item is damaged or lost through no fault of the bailee? They usually won't be held responsible.

The item has to be returned in the same condition it was handed over in, except for normal wear and tear. If the item was given for a specific purpose, like if you left your watch to be repaired, the bailment ends when that purpose is achieved, and the watch needs to be returned.

Bailment is a common part of everyday life, even if we don't always use the legal term. It covers everything from checking your coat at a restaurant to leaving your pet with a sitter. Understanding bailment is about knowing your rights and responsibilities when you're taking care of someone else's property or when someone else is taking care of yours.

What are some examples of bailment in legal contracts?

• Lease Agreement: "The lessee acknowledges that the vehicle provided under this lease constitutes a bailment until the lease term ends or the vehicle is returned."
• Storage Facility Contract: "The agreement constitutes a bailment, not a lease, of the locker and the stored goods."
• Valet Parking Ticket: "This ticket is evidence of a bailment and not a contract for parking."
• Repair Service Contract: "Upon receipt of the watch for repair, a bailment is created between the customer and the service provider."
• Dry Cleaning Receipt: "The possession of clothing for cleaning by the dry cleaner shall be deemed a bailment."
• Jewelry Consignment Agreement: "The consignment of the jewelry pieces creates a bailment, entrusting the store with their care until they are sold."
• Equipment Rental Agreement: "The custody of the rented equipment by the rentee shall be considered a bailment, subject to the terms herein."