Tips for Handling Bailments Properly
What is the general expectation for a bailee in a bailment situation?
Does the bailee have the right to retain the goods given by the bailor and return equivalent property?
Under what circumstances can a bailee return equivalent commodities instead of the original goods?
The Role of a Bailee in a Bailment
Generally, what is the expectation for a bailee in a bailment situation?
Can a bailee retain the goods given by the bailor and return equivalent property?
What are the circumstances under which a bailee can return equivalent commodities instead of the original goods?
When a person entrusts their property to someone else, such as when a customer leaves their car with a valet or a friend borrows a book, a legal relationship known as a bailment is created. In this situation, the person who delivers the property is known as the bailor, and the person who receives the property is known as the bailee.
One of the key expectations for a bailee in a bailment is the duty to take reasonable care of the property entrusted to them by the bailor. This duty includes preserving and protecting the property while it is in their possession. The bailee should not use or dispose of the property for personal gain without the bailor's consent.
Contrary to a common misconception, the bailee is generally required to return the exact property that was given to them by the bailor, rather than retaining the goods and returning equivalent property. This requirement ensures that the bailee is accountable for any damage or loss that occurs to the property while it is in their custody.
However, there are certain circumstances where a bailee may be permitted to return equivalent commodities instead of the original goods. For example, if the original goods were perishable and deteriorated while in the bailee's possession, the bailee may be allowed to return an equivalent item of equal value. This can also be done if the bailor consents to receiving an equal property in place of the original goods.