What You Need to Know About Bailment

Instances arise in our daily lives, when we entrust someone or business hold onto a personal asset for a short duration of time. This transfer of an asset legally referred to as a bailment (The term bailment is derived from the French bailor, "to deliver." 5): The transfer of personal property ("In the common law systems personal property may also be called chattels. In the civil law system personal property is often called movable property or movables". Contrary immovable property implies immovable, such as buildings or land. 9) or goods transferred to temporary custody or control of another (second party). 1 A bailment should not be confused or misinterpreted like a sale of an asset. 5 The person delivering the property is the bailor and the person receiving the personal property is the bailee. The bailee must take care of the property or asset above ordinary care (or minimum care) or secure the asset / property from any harm, damage and theft. If the personal property is stolen or damaged because bailee did not diligently or fail ensure the safety of the property (or asset), legally liable for damages. If asset is not returned to the bailor upon request, the bailee can be held liable. 1 Bailee may be liable if the property is used without the permission of the bailor. 3 Also, the bailor may sue the bailee if the property is not delivered to a third party as specified by the bailment agreement. The possession of the property by the bailee cannot be sold to a third party, unless the bailee also an agent authorized by the bailor to make such a sale. 2

Events occur or service agreement bailments: Taking furniture or personal property for storage in a warehouse, delivery of goods to an airline for shipment, valet parking, person checks a coat at a restaurant, loans a car to friend, leaving garment(s) at dry cleaning store, animals lodged at a kennels and securities or bonds left with a bank. 1, 2

Some business establishments may post signs to the affect that "no bailment' is created. However, local laws may decree that type of sign may be representing an unfair enforcement, such as parking garage business.