Bailments

Question 1

What is a bailment?

Answer 1

A bailment is a legal relationship between two persons that arises from the delivery of a chattel, without transfer of ownership. The bailee accepts delivery for a particular purpose, the accomplishment of which triggers an obligation to redeliver it or transfer it to another.

Question 2

What is a gratuitous bailment?

Answer 2

A bailment for the sole benefit of either the bailor or bailee.

Question 3

Requirements for a Bailment

Answer 3

• A delivery is only complete if the recipient accepts delivery. Bailee is strictly

Question 4

When is a bailee liable?

Answer 4

• A bailee is liable in negligence for damage to or loss of bailed chattel.
• Where benefit is solely to the bailor, standard is gross negligence.
• Where benefit is solely to the bailee, standard is slight negligence.
• Where benefit is mutual, standard is ordinary negligence.

Question 5

Examples of Implied Bailments

Answer 5

• Placing a coat on a designated coat rack at a restaurant
• Placing a chattel down in the presence of a person, and that person (or their employer) benefits from it.
• Implied bailment can be negated by refusing possession (signs saying not liable for chattel put down by customers).
• Implied bailment doesn’t exist where unexpected item is concealed.