Bailee

Bailee, Bailment, Bailor. Bailment is a contract entered into by which goods are delivered by one person (termed the bailor) to the other (termed the bailee) upon an express or implied undertaking by the latter to return them to the former, or to deliver them to some other person appointed by him after the purpose has been fulfilled. The bailee is legally bound to take care of the goods while in his possession. The amount of care to be thus taken is often expressly fixed by the contract, but where the contract is silent on this point the following rules, which are based on the presumable intention of the parties, are applicable according to the circumstances of the particular case.

1. Where the bailment is for the benefit of the bailor alone, the bailee is liable only for gross negligence.

2. Where the bailment is for the benefit of the bailee alone, he is bound to use the strictest diligence and care.

3. Where it is for the benefit of both bailor and bailee the bailee is only bound to use ordinary average diligence and care.

The practice of bailment is known in the United States, and the above illustrations of it are also applicable there.