Bailment definition
/What is a Bailment?
A bailment is the physical transfer of personal property from one party, the bailor, to another party, the bailee. This transfer does not impact ownership rights, which remain with the bailor. Under this arrangement, the bailee agrees to return the property to the bailor once a certain objective has been achieved. The bailee also agrees to take reasonable care of the property while it is in the bailee’s possession. Further, the bailee is not allowed to use the property while the property is in its possession.
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Examples of Bailments
Giving a car repair service possession of one’s car until it can be repaired is an example of a bailment, as is storing cash in a bank’s safety deposit box. Another example is sending goods to a lender as collateral on a loan.