Bailment - Explained
Placing Property in the Care of Another
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What is a Bailment?
A bailment is a situation where the owner of personal property gives the property to another person to hold or to use in a specific manner. The owner of the property is called the bailor and the person receiving the property is called the bailee. A bailment can be express (pursuant to agreement by the bailor and bailee) or implied (simply a result of the parties conduct).
- Example: To illustrate an express bailment, Alex gives his car to Brandi to sell. Brandi will receive a commission for selling the car. Until the car is sold, the situation is a bailment. Brandi is the bailee holding the property with the specific purpose of selling it for Alex. Another common form of express bailment is shipping a package through the public or private delivery service. The package is held by the common carrier is a bailment.
- Example: To illustrate an implied bailment, Gary accidentally leaves his computer at Dinas house. Dina leaves Gary a message to let him know he left it and that she will hold on to it until he can pick it up. In this situation, an implied bailment is created. Dina is holding the computer for Gary with the expectation that she return it whenever he comes to get it.
Next Article: Unilateral and Mutual Benefit Bailment Back to: PROPERTY LAW
Discussion Question
What do you think about the prospect of creating a bailment by accident? Does it matter whether the parties realize that they are part of a legal relationship? Should the bailor and bailee know that the other exists?
Practice Question
Rhonda is leaving a restaurant and picks up her coat from the rack at the door. When she reaches her home, she realizes that she has picked up someone elses coat. Rhonda decides to return the coat to the restaurant, but she cannot do so until the following day. What is Rhonda's legal status while in possessions of someone else's coat?
- A bailment describes a legal relationship in common law where physical possession of personal property, or chattel, is transferred from one person (the bailor) to another person (the bailee) who subsequently has possession of the property. It arises when a person gives property to someone else for safekeeping. Bailment is distinguished from a contract of sale or a gift of property, as it only involves the transfer of possession and not its ownership. The bailee receives only the control or possession of the property while the bailor retains the ownership interest in it. Once the purpose for which the property has been delivered has been accomplished, the property will be returned to the bailor or otherwise disposed of pursuant to the bailor's directions. In the practice question, Rhonda is acting in the capacity as a bailee. She can only be in possession of the coat and cannot act with the rights of a real owner.
Related Topics
- Property Law (Intro)
- Tangible and Intangible property?
- Knowledge Capital
- Calculated Intangible Value
- Real and Personal Property?
- Chattel
- Littoral Land
- Fixtures?
- Appurtenance
- Readily Removable Fixtures
- What is ownership?
- Role of Government in ownership of property?
- Allodial System
- Role of property rights in economic activity?
- What are the limitations on property ownership rights?
- What is nuisance?
- What is Zoning?
- What is Eminent Domain?
- Just Compensation
- What is Property Taxation?
- Assessment Ratio
- Millage Rate
- Homeowners Association (HOA)
- Accession?
- Rule of First Possession?
- Lost or Mislaid Items?
- Adverse Possession?
- Encroachment
- Contracts?
- Gift?
- Confusion?
- Establishing and transferring ownership in real property?
- Absolute Title
- Warranty Deed
- Register of Deeds
- Conveyance
- What is a fee simple interest in real property?
- Absolute Interest
- Restrictive Covenant
- What is a life estate in real property?
- What is a leasehold estate in real property?
- What are common types of co-ownership relationships in real property?
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- What if Co-Owners of Real Estate Want Out
- Community Property and Separate Marital Property?
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- What is a license of real or personal property?
- Bundle of Rights
- Absorption Rate
- Fair Housing Act
- Federal Housing Administration (FHA)
- Housing and Urban Development (HUD)
- National Housing Act
- Design Build Contract
- Building Permits
- Certificate of Acceptance
- Construction Surety Bond
- Acquisition, Development, and Construction Loan (ADC)
- Flipping (Real Property)
- Buy, Strip, and Flip
- Homeowner Affordability and Stability Plan
- Building Residual Method
- Accessory Dwelling Unit
- Property Management
- Cost-Plus Contract
- Real Estate Investment Fund
- Listing Agreement
- Property Lawyers
- Multiple Listing Service
- Home Equity
- Register of Deeds
- Title Search
- Opinion of Title
- Certificate of Title
- Abstract of Title
- Chain of Title
- Clear Title
- Cloud on Title
- Defective Title
- Defect of Record
- Action to Quiet Title
- Abeyance
- Encumbrance
- Affidavit of Title
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- Earnest Money
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- Certificate of Release
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Deficiency Judgment
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- Deed in Lieu of Foreclosure
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One Percent Rule
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- True Lease Definition
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- Habendum Clause
- Attornment
- Implied Warranty of Habitability
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Co-Tenancy Clause
- What is a bailment?
- Consignment
- Unilateral-benefit and mutual benefit bailments?