Bailment is common Law based legal relationship between two parties. Bailment specifies physical possession of property from bailor to bailee. The reason behind is the benefit of any one or both parties.
Example # 1
Mr. William is travelling to some other country and gives his car or house possession to any of his friend or family to keep them safe.
Example # 2
Sandra got an urgent call for business meeting from boss and left laptop to her friend with whom she was having lunch at hotel.
Types of Bailment
There are Seven different types depending upon bailment cases as well as depends upon liability to return.
Where the bailee does not charge any thing for the bailment it is called gratuitous bailment.
Bailment for Reward
When the bailor charges any thing for his services it is called bailment for rewards.
Bailment for Use
When the bailor delivers an article to the bailee for use by the later in any general or specific way, this is called a bailment for use.
Example: X delivers his watch to Y for the latter to use it for one month. Here bailment is bailment for used.
Bailment of Safe Custody
If valuable goods or even coins or notes in box are deposited for protection, it is called bailment for safe custody.
Example: Sam gives his watch to Y for the latter to keep it in safe custody for two months.
Bailment for Mutual Benefit
When the bailor delivers his articles to another for repair or gives his goods to carrier for carriage, it is known as bailment for mutual benefit.
Bailment for Pledge
It is a contract whereby an article is deposited with a lender as security for the payment of a loan or performance of a promise.
Bailment for Finding of Lost Goods
If a person already in possession of the lost goods of another, he thereby becomes the bailee and the owner becomes the bailor.