What Is a Bailment?

When a man takes his suit to the dry cleaners, a bailment relationship exists between him and the dry cleaner. The man retains ownership of the suit and is called the bailor. The dry cleaner has the right to possess the suit and is called the bailee. a bailment, then is defined as a rightful possession of goods by someone other than the owner.

How Is a Bailment Created?

A bailment is created when, coupled with the intent to possess certain property, the bailee accepts the actual physical possession and control of the property. In the example, the bailment is created when the dry cleaner accepts the man's suit with the intent to possess the suit.

The intent to possess includes the intent to control the property as well as the intent to return the property to the owner, usually under a prearranged agreement. Such agreements can be as informal as an understanding that, as in the example, the man will pick up his suit on a certain date. Other circumstances may require a more formal agreement, such as a written contract of bailment.

Standard of Care

The bailee's duty to take care of the property varies depending on the type of bailment that is created. If the bailment is for the sole benefit of the bailee, the bailee must use extraordinary care and is liable for even slight neglect. If the bailment is for the mutual benefit of the bailee and the bailor, the bailee must use ordinary care and is liable for damage caused by his negligence. A gratuitous bailment or a bailment for the sole benefit of the bailor only imposes a duty of slight care and results in liability for gross negligence on the part of the bailee.

Duty of Redelivery

The bailee is held to strict liability for his failure to redeliver the property. Following the example, this means that if the dry cleaner gave the suit to the wrong customer, the dry cleaner would be liable even if he had used reasonable care to prevent the error.

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