Law of Contract - Bailment

Question 1

What is bailment? (2)

Answer 1

1. Involves the transfer of possessions or goods from one party to another.
2. Ownership of the goods is unaffected and does not change with the transfer of possession.

Question 2

Who is a bailor?

Answer 2

The party who owns or has legal rights to good or property & entrusts the property into the safe keeping of another party

Question 3

Who is a bailee?

Answer 3

The person entrusted with the property

Question 4

What are the two types of bailee?

Answer 4

1. Gratuitous bailee
2. Bailee for reward

Question 5

What is a gratuitous bailee? (3)

Answer 5

1. Someone looking after property without payment, e.g a friend.
2. Has some legal liability to the bailor, liability is not onerous and may be absolved if they can show reasonable care taken to prevent loss or damage to item.
3. Must take same care to property as they would their own.

Question 6

What is a bailee for reward? (4)

Answer 6

1. Usually paid for their service
2. Owes bailor duty of care to return property
3. Bailee liable to bailor unless they can show they were not at fault
4. Onus of proof lies with bailee to show they haven’t been negligent