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{{Short description|Legal relationship in common law}}
{{redirect|Bailor|the baseball player|Bob Bailor}}
{{redirect |Bailee| the actress and singer|Bailee Madison}}
{{More citations needed|date=November 2019}}
{{Property law}}
'''Bailment''' is a legal relationship at [[common law]], where the owner of [[personal property]] ("chattel")  transfers physical [[Possession (law)|possession]] of that property to another, who holds the property for a certain purpose, while the transferor retains ownership.<ref>{{cite book |editor1-last=Garner |editor1-first=Bryan A |title=Black's law dictionary |date=2009 |publisher=West |location=St. Paul, MN |isbn=978-0314199492 |page=162 |edition=9th}}</ref> The owner who surrenders custody of a property is called the "bailor" and the individual who accepts the property is called a "bailee".<ref name=":1">{{Cite book|last=Merrill, Thomas W.|title=Property|date=2010|publisher=Oxford University Press|others=Smith, Henry E.|isbn=978-0-19-971808-5|location=New York|oclc=656424368}}</ref> The bailee is the person who possesses the personal property  for the owner for a set time{{Efn|Under English common law, a bailment need not be for a precise term, it can be "at will".<ref>{{Cite book |last1=Faber |first1=Wolfgang |url=https://books.google.com/books?id=oZZ7NOw5JqoC |title=England and Wales, Ireland, Scotland, Cyprus |last2=Lurger |first2=Brigitta |date=27 April 2009 |publisher=Walter de Gruyter |isbn=978-3-86653-703-3 |page=23 |language=en |quote=It is recognised that such a relationship can be of two main types: 'at will', meaning that the bailor can call for possession to be returned at any time; or 'for a term', meaning that the bailor only has a right to the return of the asset upon expiration of the certain period (save where the bailment has been repudiated...). Unless the bailor has made a binding promise to allow the bailee to retain possession for a fixed term, the bailment is at will.}}</ref><ref>{{Cite book |last1=Faber |first1=Wolfgang |url=https://books.google.com/books?id=PkCVFWyts5EC |title=Acquisition and Loss of Ownership of Goods |last2=Lurger |first2=Brigitta |date=30 March 2011 |publisher=Walter de Gruyter |isbn=978-3-86653-901-3 |page=388 |language=en |quote=Unless the bailor has given a binding promise to confer possession to the bailee for a fixed term, the bailment is considered to be at will. Bailment can derive from a contract, but this is not always the case and gratuitous bailments (e.g. deposit of luggage with a coach driver during travel) also exist (''Houghland v. R. R. Low (Luxury Coaches) Ltd.'' [1962] 1 QB 694).}}</ref>}} and for a precise reason and who delivers the property back to the owner when they have accomplished the purpose that was initially intended.<ref name=":0">{{Cite book|title=American Jurisprudence|last1=Gordon|first1=Noah J.|last2=Surette|first2=Eric C.|edition=2d|volume=8A|chapter=Bailments}}</ref>

==General==
Bailment is distinguished from a [[contract of sale]] or a [[gift (law)|gift]] of property, as it only involves the transfer of [[Possession (law)|possession]] and not its [[ownership]].  To create a bailment, the bailee must both intend to possess, and actually physically possess, the bailable chattel, for example, a car mechanic business when a car has been dropped off for repair. Although a bailment relationship is ordinarily created by contract, there are circumstances where lawful possession by the bailee creates a bailment relationship without an ordinary contract,<ref name=":0" /> such as an [[Bailment#Involuntary bailees|involuntary bailment]]. A bailment relationship between the bailor and bailee is generally less formal than a fiduciary relationship.<ref name=":0" />

In addition, unlike a [[lease]] or rental, where ownership remains with the lessor but the lessee is allowed to use the property, the bailee is generally not entitled to the use of the property while it is in his possession. However, a lease of personal property is the same as a bailment for hire, where the bailee gains the right to use the property.<ref name=":0a">{{Cite book|title=American Jurisprudence|last1=Gordon|first1=Noah J.|last2=Surette|first2=Eric C.|edition=2d|volume=8A|chapter=Bailments § 5. Transactions constituting bailments}}</ref>  

A common example of bailment is leaving one's car with a [[Valet parking|valet]].<ref>{{Cite book |last=Cheeseman |first=Henry R. |url=https://books.google.com/books?id=nAw9AQAAIAAJ |title=Business Law: Ethical, International & E-commerce Environment |date=2001 |publisher=Prentice Hall |isbn=978-0-13-087913-4 |page=928 |language=en |quote=It is clear that parking lots and garages are bailees of automobiles once they assume control and possession of the automobile. Thus, if a valet parking attendant parks the car and keeps the keys, it is relatively certain that a court will recognize the existence of a bailment and hold the garage liable if the vehicle is stolen.}}</ref> Leaving a car in an unattended [[parking garage]], however, is typically a [[lease]] or [[license]] of a parking space rather than a bailment, as the garage does not take possession of (i.e. exercise dominion or control over) the car.  However, bailments arise in many other situations, including terminated leases of property, warehousing (including store-it-yourself), or in carriage of goods.

=== Governing law ===
In the United States, bailments are frequently governed by statute.<ref name=":0" /> For example, the UCC regulates personal property leases.<ref>U.C.C. §§ 2A-101 to 2A-604.

As to the regulation of personal property leases under U.C.C. §§ 2A-101 et seq., see §§ 269 to 343.</ref> State bailment for hire statutes may also regulate the rights and duties of parties in the bailment relationship.<ref name=":0" /><ref>See ''Mark Singleton Buick, Inc. v. Taylor'', 194 Ga. App. 630, 391 S.E.2d 435, 12 U.C.C. Rep. Serv. 2d 84 (1990).</ref> The [[Malay States]]' ordinance of 1950 on contracts stated that:{{quote|104. In all cases of bailment the bailee is bound to take as much care of the goods bailed to him as a man of ordinary [[prudence]] would, under similar circumstances, take of his own goods of the same bulk, quality, and value as the goods bailed.<br />105. The bailee, in the absence of any special contract, is not responsible for the loss, destruction, or deterioration of the thing bailed, if he has taken the amount of care of it described in s 104 of this Ordinance.<ref>Contracts (Malay States) Ordinance of 1950, sections 104-105, quoted in [[Privy Council (United Kingdom)|Privy Council]], [https://web.archive.org/web/20101202150355/https://www.ipsofactoj.com/archive/1978/Part04/arc1978(4)-003.htm Port Swettenham Authority v TW Wu & Co (M) Sdn Bhd], reported 19 June 1978, accessed 21 September 2023</ref>}}

Bailment is a typical common law concept,<ref>{{Cite book |last=Story |first=Joseph |url=https://books.google.com/books?id=9VtDAAAAcAAJ |title=Commentaries on the Law of Bailments: With Illustrations from the Civil and the Foreign Law |date=1839 |publisher=J. Richards |page=227 |language=en |quote=And in the common law, it would be treated as a case of bailment, only when the stock or materials belong to the employer. And, where the principal materials belong to the employer, the case would still be treated as a bailment, although the workman might furnish some accessorial materials or ornaments.}}</ref> although similar concepts exist in civil law.<ref>{{Cite web|url=https://uk.practicallaw.thomsonreuters.com/9-381-8490?transitionType=Default&contextData=(sc.Default)&firstPage=true|title=Bailment|website=uk.practicallaw.thomsonreuters.com|language=en-GB|access-date=2017-09-18}}{{fv|reason=This page does not refer to civil law|date=September 2023}}</ref>

{{Quote box
| quote = "Sir William Jones has defined bailment to be 'a delivery of goods on a condition, express or implied, that they shall be restored by the bailee to the bailor, or according to his directions, as soon as the purpose for which they are bailed shall be answered.' He has again, in the closing summary of his essay, defined it in language somewhat different, as, 'A delivery of goods in trust, on a contract expressed or implied, that the trust shall be duly exercised and the goods re-delivered, as soon as the time or use for which they were bailed shall have elapsed or be performed.'"
| source = Wharton, J. (1867)<ref>{{Cite book |last=Wharton |first=John |url=https://books.google.com/books?id=lUgU67cRRqoC |title=The Law Lexicon Or Dictionary of Jurisprudence: Explaining the Technical Words and Phrases Employed in the Several Departments of English Law... |date=1867 |publisher=Stevens and sons |page=110 |language=en}}</ref>
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==Purposes==
There are three types of bailments, based on the purpose of the relationship:<ref name=":0" />

#for the benefit of the bailor and bailee
#for the sole benefit of the bailor; and
#for the sole benefit of the bailee.

;Examples
A bailment for the mutual benefit of the parties is created when there is an exchange of performances between the parties (e.g. a bailment for the repair of an item when the owner is paying to have the repair accomplished).

A bailor receives the sole benefit from a bailment when a bailee acts gratuitously  (e.g. the owner leaves the precious item such as a car or a piece of jewelry in the safekeeping of a trusted friend while the owner is traveling abroad without any agreement to compensate the friend).

A bailment is created for the sole benefit of the bailee when a bailor acts gratuitously (e.g., the loan of a book to a patron, the bailee, from a library, the bailor).

==Damages==
Plaintiffs will be able to sue for damages based on the duty of care.<ref>{{Cite book |last1=James |first1=Nickolas |url=https://books.google.com/books?id=E67pEAAAQBAJ |title=Business and Company Law, 3rd Edition |last2=Chapple |first2=Ellie (Larelle) |last3=Baumfield |first3=Richard |last4=Copp |first4=Richard |last5=Cunningham |first5=Robert |last6=Kamalnath |first6=Akshaya |last7=Floyd |first7=Louise |date=2024-04-08 |publisher=John Wiley & Sons |isbn=978-1-394-23528-5 |page=119 |language=en |quote=The person in possession of the goods (the bailee) owes a duty of care to the owner of the goods (the bailor) to take reasonable care of the goods. If the bailee fails to take reasonable care of the goods, they will be liable for loss or damage to the goods.}}</ref> Often this will be normal [[tort]] damages. Plaintiff may elect also to sue for [[conversion (law)|conversion]], either in the [[replevin]] or [[trover]], although these are generally considered older, common law damages. In US jurisdictions, the measure of care required by the bailee in a mutual benefit bailment is "ordinary care" or "due care".<ref>{{Cite book |url=https://books.google.com/books?id=rFooAQAAMAAJ |title=American Jurisprudence: A Modern Comprehensive Text Statement of American Law, State and Federal |date=1962 |publisher=Lawyers Co-operative Publishing Company |pages=167, 637 |language=en |quote=Observation: The common-law duty of ordinary care in a mutual benefit bailment has been codified by statute in some jurisdictions, and has been modified by other bailment-for-hire statutes. The degree of care required of a bailee for mutual benefit is defined as ordinary care, or due care, or the degree of care which would be exercised by a person of ordinary care in the protection of his or her own property,...}}</ref>

==Terms==
Bailment can arise in a number of situations and is often described by the type of relationship that gave rise to the bailment. Two common distinctions are:

* For [[consideration]] versus gratuitous. If a person agrees to accept a fee or other good consideration for holding possession of goods, they are generally, although not always,<ref>[[Privy Council (United Kingdom)|Privy Council]], [https://web.archive.org/web/20101202150355/https://www.ipsofactoj.com/archive/1978/Part04/arc1978(4)-003.htm Port Swettenham Authority v TW Wu & Co (M) Sdn Bhd], reported 19 June 1978, accessed 21 September 2023</ref> held to a higher [[standard of care]] than a person who is doing so without being paid (or receives no benefit). Consider a paid coat-check counter versus a free coat hook by the front door and the respective obligations of the bailee. Some establishments even post signs to the effect that "no bailment" is created by leaving your personal possessions in their care, but local laws may prevent unfair enforcement of such terms (especially attended car parks).
* Fixed-term versus indefinite-term.  A bailor who leaves property for a fixed term may be deemed to have [[Abandonment (legal)|abandoned]] the property if it is not removed at the end of the term, or it may convert to an involuntary bailment for a reasonable time<ref>{{Cite book |last=Burrows |first=Andrew |url=https://books.google.com/books?id=SCWQDwAAQBAJ |title=Principles of English Commercial Law |date=29 April 2016 |publisher=Oxford University Press |isbn=978-0-19-106328-2 |page=278 |language=en |quote=Where a bailee is left in possession of goods for a period longer than that contemplated, various doctrines may enable him to lessen his responsibility. At one extreme, the court may find that he has become an involuntary bailee and no longer owes any duty to take care to safeguard the goods from theft or other physical hazard. This conclusion will be easier to reach where the bailment was for a fixed period, though even in that event the court may imply a period of grace before the duties of the bailee determine.}}</ref> (e.g., abandoned property in a bank safe, eventually [[escheat]]s to the state, and the treasurer may hold it for some period, awaiting the owner). However, if there is no clear term of bailment agreed upon, the goods cannot be considered abandoned unless the bailee is given notice that the bailor wishes to give up possession of the goods.  Frequently, in the case of storage of goods, the bailee also acquires a contractual or statutory right to dispose of the goods to satisfy overdue rent.

==Cases==
*''[[Coggs v Bernard]]'' (1703)

== Notes ==
{{notelist}}

== References ==
<references />

==See also==
*[[Bail]]
*[[Trover]]
*[[Replevin]]


[[Category:Personal property law]]