The Difference Between Bailment and Sale

How is a bailment legally different from a sale?

a) A bailment involves a transfer of ownership.
b) A bailment involves a transfer of possession, not ownership.
c) A sale involves only a transfer of possession.
d) A sale involves a transfer of both possession and ownership.

Answer:

The correct answer is b) A bailment involves a transfer of possession, not ownership.

When considering the legal aspects, a bailment is distinct from a sale. In a bailment, the transfer of possession occurs without the transfer of ownership, unlike a sale where both possession and ownership are transferred.

A bailment involves one party entrusting personal property to another party, who temporarily holds possession of the property while the bailor retains ownership. The bailee is responsible for the safekeeping and return of the property after the bailment ends. Common examples of bailment include lending a car to a friend or leaving valuable items in a storage facility.

On the other hand, in a sale, ownership and possession of an item or property are permanently transferred from the seller to the buyer in exchange for an agreed-upon price. Once the transaction is complete, the buyer assumes full ownership and possession of the purchased item. A typical example of a sale is purchasing a product from a retail store.