Definition
A bailee is an individual or entity who is given temporary custody or control of personal property by another person, known as the bailor, under a bailment agreement. The bailee is responsible for safeguarding the property and returning it in the same condition once the purpose of the bailment has been fulfilled.
Examples
- Moving Company and Furniture: When a person hires a moving company to transport their furniture, the moving company becomes the bailee of the furniture while it is in their possession.
- Dry Cleaner and Clothes: If a person takes their clothes to a dry cleaner, the dry cleaner becomes the bailee until the clothes are picked up.
- Garage and Car: When a person parks their car in a parking garage, the garage operator takes on the role of bailee for the vehicle.
- Trustee of Valuables: When someone places their valuable items into a safety deposit box at a bank, the bank acts as the bailee of those valuables.
Frequently Asked Questions
What responsibilities does a bailee have?
A bailee is responsible for taking reasonable care of the bailed property and returning it in the same condition to the bailor once the purpose of the bailment has been satisfied.
Is a bailee liable for any damage or loss to the bailed property?
The liability of a bailee can vary based on the terms of the bailment agreement and the level of care exercised. Generally, a bailee is liable for acts of negligence that result in damage or loss of the property.
What are the types of bailment?
Bailment can be classified into three main types:
- Gratuitous Bailment: where the bailee does not receive any compensation.
- Bailment for Mutual Benefit: where both the bailee and the bailor benefit from the bailment.
- Involuntary Bailment: where the bailee is in possession of the property without the bailor’s explicit agreement.
Can a bailee use the bailed property?
Typically, the bailee does not have the right to use the bailed property unless permission has been explicitly given by the bailor.
Related Terms
- Bailor: The person who transfers possession of personal property to the bailee.
- Bailment Agreement: A contract in which the bailor transfers possession of personal property to the bailee.
- Negligence: The failure to take proper care in doing something, which can result in the bailee’s liability.
- Conversion: The unauthorized act of taking or using someone else’s property.
Online References
Suggested Books for Further Studies
- “Business Law: Text and Cases” by Kenneth W. Clarkson, Roger LeRoy Miller, Frank B. Cross
- “The Law of Bailments” by David Q. Horowitz
Fundamentals of Bailee: Business Law Basics Quiz
### Who is responsible for taking reasonable care of the property under bailment?
- [x] Bailee
- [ ] Bailor
- [ ] Agent
- [ ] Trustee
> **Explanation:** The bailee is responsible for taking reasonable care of the bailed property as per the terms of the bailment agreement.
### What is the term for the person who gives possession of personal property in a bailment arrangement?
- [ ] Bailee
- [x] Bailor
- [ ] Lender
- [ ] Custodian
> **Explanation:** The person who transfers possession of personal property to the bailee is called the bailor.
### If a person leaves their clothes at a dry cleaner, who becomes the bailee?
- [ ] The customer
- [x] The dry cleaner
- [ ] The garment manufacturer
- [ ] The store manager
> **Explanation:** The dry cleaner becomes the bailee when the customer leaves their clothes for cleaning.
### Can a bailee use the bailed property at their discretion?
- [ ] Always
- [x] Only with permission
- [ ] Yes, unless explicitly stated otherwise
- [ ] No, never
> **Explanation:** Generally, a bailee cannot use the bailed property unless explicit permission has been granted by the bailor.
### Which type of bailment involves no compensation to the bailee?
- [x] Gratuitous Bailment
- [ ] Bailment for Mutual Benefit
- [ ] Involuntary Bailment
- [ ] Conditional Bailment
> **Explanation:** Gratuitous bailment involves no compensation to the bailee for taking care of the bailed property.
### What is the primary duty of a bailee?
- [ ] To transfer property ownership
- [x] To return the property in the same condition
- [ ] To sell the property
- [ ] To evaluate the property's value
> **Explanation:** The primary duty of a bailee is to take care of the property and return it to the bailor in the same condition.
### What term describes an unauthorized use of the bailed property by the bailee?
- [x] Conversion
- [ ] Larceny
- [ ] Mismanagement
- [ ] Negligence
> **Explanation:** Conversion refers to the unauthorized take or use of someone else's property, which can lead to the bailee's liability.
### If furniture is handed over to a moving company, who is the bailee?
- [ ] The furniture owner
- [x] The moving company
- [ ] The truck driver
- [ ] The storage warehouse
> **Explanation:** The moving company becomes the bailee while the furniture is in their custody.
### What typically governs the terms and responsibilities in a bailment relationship?
- [ ] Verbal statements
- [ ] Local customs
- [x] Bailment agreement
- [ ] General consent
> **Explanation:** A bailment agreement generally governs the terms and responsibilities of the bailee and bailor in a bailment relationship.
### Which factor is NOT relevant in determining the bailee’s liability?
- [ ] Negligence
- [ ] Type of bailment
- [x] Bailee's ethnicity
- [ ] Bailment terms
> **Explanation:** The ethnicity of the bailee is not relevant in determining the bailee’s liability. Liability is typically determined by negligence, type of bailment, and the specific bailment terms.
Thank you for exploring the detailed dynamics of bailees with us and testing your knowledge with our quiz. Keep advancing your understanding of business law concepts!
