Question

When classes end in June, you decide to take an internship in Australia. You decide to rent a storage unit for all your personal possessions at Money Save Mini Storage for 3 months.

a. Who is the bailor and who is the bailee?

b. What are the elements of a bailment?

c. What is the degree of care required of the bailee? Explain.

Answer 1

a. Bailor is the one who owns the property or goods whereas bailee is the one who rents the property temporarily or has temporary possession. In this case, Money Save Mini Storage is the bailor and I am the bailee.

b. The elements of bailment are as follows:

1. Agreement: The bailor and the bailee undergo a legal documentation process where bailor agrees to give the bailee a temporary possession on property or goods in exchange for some value worth.

2. Transfer of property or goods: After this agreement, bailor will deliver its property to bailee as agreed in the contract voluntarily. This is not actual delivery of the property but on a temporary basis, bailor transfers all rights and responsibility related to the property.

3. Return of goods or property: Once the delivery is done for an agreed period of time between bailor and bailee, the bailee is liable to return the possession of the property.

c. Bailee is responsible for any kind of positive or negative change in the property after possession. Bailee is liable to return the property to the bailor without any damage. Bailee should ensure that there will be no conversion or change in the property outside the knowledge of the bailor. Also, bailee should take care of the property in the period between delivery and return or agreed bailment period. Any kind of damage to the property under this period will give the right to bailor to take any legal action against bailee.

There is an inverse relationship between the benefit of bailee and the amount of care withheld with the bailee. Therefore, if the bailment is beneficial for both bailor and bailee then bailee can take normal care but if the benefit of bailment is for bailee only then bailee has to take extra care.

Thus, these are the degree of care required for the bailment.