Define: Bailee

Bailee
Bailee
Quick Summary of Bailee

A person who receives goods under a bailment, that is, in circumstances where the goods enter his possession but where he is under an obligation to return them to the original party at the agreed time.

What is the dictionary definition of Bailee?
Dictionary Definition of Bailee

One who holds bailed property; one who takes possession of the property of another (called a bailor) in order to keep that property safe for the other.

A bailee is a person who temporarily holds possession of another person’s property, typically for the purpose of storage, transportation, or safekeeping. The bailee has a duty to exercise reasonable care in safeguarding the property and may be held liable for any damage or loss that occurs while the property is in their possession. The specific rights and responsibilities of a bailee may vary depending on the terms of the bailment agreement and the applicable laws in the jurisdiction.

n. a person, also called a custodian, with whom some article is left, usually pursuant to a contract (called a “contract of bailment”), who is responsible for the safe return of the article to the owner when the contract is fulfilled. These can include banks holding bonds, storage companies where furniture or files are deposited, a parking garage, or a kennel or horse ranch where an animal is boarded. Leaving goods in a sealed rented box, like a safe deposit box, is not a bailment, and the holder is not a bailee since he cannot handle or control the goods.

Full Definition Of Bailee

A bailee is a person who temporarily holds possession of another person’s property, typically for the purpose of storage, transportation, or safekeeping. The bailee has a duty to exercise reasonable care in safeguarding the property and may be held liable for any damage or loss that occurs while the property is in their possession. The specific rights and responsibilities of a bailee may vary depending on the terms of the bailment agreement and the applicable laws in the jurisdiction.

Bailee FAQ'S

A bailee is a person or entity who temporarily possesses someone else’s property for a specific purpose, such as storage, repair, or transportation.

A bailee has a duty to exercise reasonable care in safeguarding the property entrusted to them. They must protect the property from damage, theft, or loss and return it in the same condition as when it was received.

Yes, a bailee can be held liable for any damage or loss to the property if it is proven that they failed to exercise reasonable care or acted negligently. However, certain circumstances, such as acts of God or unforeseeable events, may limit their liability.

Yes, a bailee is generally entitled to charge a reasonable fee for their services. The fee should be agreed upon in advance and should reflect the nature of the services provided.

A bailee cannot refuse to return the property to the owner unless there is a valid reason, such as unpaid fees or a dispute over the ownership of the property. In such cases, the bailee may have the right to retain possession until the issue is resolved.

No, a bailee cannot use the property for their own benefit unless it is explicitly authorized by the owner or agreed upon in the terms of the bailment. Any unauthorized use may be considered a breach of the bailee’s duty.

Generally, a bailee is not responsible for damage caused by a third party unless they were negligent in allowing the third party access to the property or failed to take reasonable precautions to prevent such damage.

Yes, a bailee can limit their liability through a contract or agreement with the owner. However, such limitations must be reasonable and not against public policy. Certain types of property, such as personal belongings or essential goods, may have limitations on liability that cannot be waived.

In some cases, a bailee may have the right to sell or dispose of the property if the owner fails to claim it within a specified period and after reasonable attempts to notify the owner. However, specific laws and regulations may vary depending on the jurisdiction.

A bailee is generally not responsible for damage caused by inherent defects in the property unless they were aware of such defects and failed to disclose them to the owner. However, if the bailee’s actions exacerbate the damage caused by the defect, they may be held liable.

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Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 30th April 2024.

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