What is Bailment?

Bailment involves a legal relationship where one party transfers property possession to another, but retains ownership. 

Bailment Categories

There are three types of bailment: 

• Benefiting the bailor

• Benefiting the bailee

• Benefiting both parties

Termination of Bailment

Bailment can end due to: 

• Fulfillment of purpose

• Time expiration

• Damage to the property

• Termination by the bailor or bailee

Bailment Process

In bailment, the bailor allows the bailee to handle and use an item for a reason. After fulfilling the reason, the bailee returns the item. The bailor might pay the bailee if agreed upon beforehand.