Bailment

Bailment is distinguished from a contract of sale or a gift of property, as it only involves the transfer of 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, A common example of bailment is leaving one's car with a valet. 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. State bailment for hire statutes may also regulate the rights and duties of parties in the bailment relationship. The Malay States' ordinance of 1950 on contracts stated that: Bailment is a typical common law concept, although similar concepts exist in civil law. ==Purposes==

There are three types of bailments, based on the purpose of the relationship: • 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. Often this will be normal tort damages. Plaintiff may elect also to sue for 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". ==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, 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 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 (e.g., abandoned property in a bank safe, eventually escheats 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) established that a bailment can exist even if it is gratuitous. == Notes ==