Bailment

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Bailment describes the legal relationship in common law in which the physical property of a private property, or moving goods, is transferred from one person ("bailor") to another ("bailee") who then owns the property. It arises when someone gives the property to someone else to keep, and is the cause of an action independent of contract or error.

Video Bailment

General

Bailments are distinguished from sales contracts or property rewards, as they involve transfer of ownership and not ownership. To create a bailment, a bailee must have the intention of owning, and actually physically owning, the bailable chattel. Bailment is a typical general concept of law even though a similar concept exists in civil law (Spanish- DepÃÆ'³sito).

In addition, unlike rent or lease, 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 temporary property in its possession.

A common example of a bailment is leaving your car with valet. Letting your car in an unattended parking garage is usually a rental or a parking license rather than a bailment, as the intention of parking the car to have your car can not be shown. However, bailments arise in many other situations, including discontinued property leases, warehousing (including own storage) or in the carriage of goods.

Maps Bailment

Destination

There are three types of bailment:

1. for the benefit of bailor and bailee
2. for the sole benefit of bailor; and
3. just for bailee's benefit.

Example

A bailment for mutual benefit from parties is made when there is a performance exchange between the parties (eg a guarantee for repair of goods when the owner pays for the repair is completed).

A bailor receives the only benefit of bailing when a bailee acts haphazardly (eg the owner leaves valuable items such as cars or jewelery in securing a trusted friend while the owner travels abroad without agreement to compensate a friend).

A bailment is made for the benefit of the only bailee when a bailor acts haphazardly (eg, loan a book to a patron, bailee, from a library, bailor).

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Type

Modifying the previous opinion of Lord Holt ( Coggs v. Bernard, 92 Eng Rep. 107 (KB 1704) ), Sir William Jones in his 1781 Essay on the Law of Suspension dividing the bailment into five kinds, namely:

• deposit ( depositum );
• haphazard agency ( mandatum );
• loans for use ( commodatum );
• possession pledge ( pignori acceptum );
• loans for rent ( locatum or locatio et conductio ), these are divided into:
  • locatio rei , or rent the place of the bailee ( bailee ) obtain the temporary use of the object;
  • locatio operis faciendi , when there is something to be done for the given thing; and
  • locatio operis mercium vehendarum , when the object is only transported from one place to another.

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Liability

No matter how the deposit appears, bailee will be liable in taking bailment in some cases insuring the goods. Different jurisdictions maintain different treatment standards.

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Strict responsibility

The old old law held a bailee that was very responsible for the bailment. The exception to this rule is the case of unintentional bailments (see below), when the bailee is held only as a standard of care.

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System tiered

In many jurisdictions, the system of strict accountability has been replaced by a tiered accountability system that relies on bailee relationships with bailors. Bailee is generally expected to take reasonable precautions to protect property, although this standard sometimes varies depending on who benefits from bailment.

• If both bailor and bailee are found to benefit from the relationship, such as sending a packet, then the bailee is held with ordinary care standards, or it makes sense. ( mutual benefits )
• If the warranty is for the primary benefit of a bailor, such as finding a lost wallet, the bailee must be found very negligent to be responsible for any damage done to the bailment.
• If a bailee is especially profitable, as if you borrowed your neighbor's sweep to clean your yard, the bailee must perform the highest maintenance, which is responsible for any damage arising from a slight negligence.

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Normal care

Some jurisdictions have withheld baile to normal care standards regardless of who benefits from bailor/bailee relationships.

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Accidental Bailees

Exceptions to all of the above are deliberate bailee cases, people with unintentional actions being bailee. For example, if a person is given a stock certificate but it turns out the wrong certificate (intended for someone else), he is an accidental bailee, he did not make a deliberate act to become a bailee. Therefore, he/she is entitled to release his/her own certificate regardless of obligation, as long as he or she does not commit harm or intentional damage to others.

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Damage

Plaintiff will be able to claim compensation based on maintenance duties. Often this will be a reasonable compensation. Plaintiffs may also choose to demand a conversion, either in replevin or trover, although this is generally considered to be older, common law damage.

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Requirements

Bailment can arise in a number of situations, and is often illustrated by the type of relationship that gives rise to bailment. Some common differences are:

• Voluntary vs. Without Voluntary. In voluntary guarantees, the bailee agrees to accept responsibility for ownership of the goods. In an unintended collateral, the bailee owns the goods without intending to do so. The general situation that creates voluntary bailment is when someone leaves the item with someone for the service (eg, dry cleaning, pet care, car settings). Bailee must keep things safe for the bailor to get back in reasonable time. Deliberate piracy (or constructive ) occurs when a person owns the property inadvertently or erroneously, because where a lost wallet or car key is found and needs to be protected until it is properly sent back - the guarantee is implied by law.
• For consideration vs. haphazard. If a person agrees to receive fees or other good considerations for holding ownership of the goods, they are generally held with a higher standard of care than the person who does so without pay (or does not receive benefits). Think of a counter check for a pay coat versus a free coat hanger at the front door, and the obligations of each bailee. Some companies even post signs for the effect that "no guarantees" are made by leaving your personal property in their care, but local laws may prevent unfair enforcement of those provisions (especially car parks).
• The term is fixed vs. unlimited time period. A bailor who leaves the property for a fixed period may be deemed to have abandoned the property if it is not removed by the end of the term, or it may be converted to an involuntary warranty for a reasonable time (for example, the property left in a bank safe, eventually escheats to the state, and the treasurer may holding it for some period, waiting for its owner). However, in the absence of an agreed terms of guarantee, the goods shall not be deemed abandoned unless the bailee is notified that the bailor wishes to surrender his property. Often, in the case of storage of goods, the bailee also obtains a contractual or statutory right to dispose of goods to fulfill the maturing lease; conversion of legitimate guarantee goods.
Case
• Coggs v Bernard (1703)



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See also

• Bail
• Interest in securities
• Trover
• Replevin



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References




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External links

• Free Dictionary
• The Lexicon of the Oral Law Library

Source of the article : Wikipedia