Bailment is a legal correlation between two different people/parties for the physical possession of the property. The Bailor (the one who transfers the property) transfers the possession of the property to Bailee (the one who gets the property) for a certain duration of time but remains the owner of the property.
Types of Bailment
Bailment is classified into three categories;
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Bailment that benefits to Bailor
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Bailment that benefits Bailee
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Bailment that benefits both the Bailor and the Bailee
End of the Bailment
A Bailment can be ended due to some scenarios:
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End of the Bailment purpose
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Expiration of a certain period of time
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Knocking down of the Bailed property
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Termination notice is given by the Bailor or the Bailee
How does Bailment work?
A bailment is a type of contract that can be verbal or written, where the bailor gives the bailee the right to hold and use something for a specific reason. The bailee agrees to return the thing to the bailor when the reason is fulfilled, and the bailor may pay the bailee some money if they decided that beforehand.