Question

In this question, identify what a bailment is by writing one to two sentences. Then take a look at each of the four scenarios and discuss whether or not the following common transactions are bailments and if so, who the bailor/bailee is and what type of bailment is involved. Make sure you write something for each statement; each worth 1 point and the bailement explanation is worth 1 point for a total of 5 points for this essay question.

Scenario A: Renting storage space in Farmer's Frank's huge barn to keep your classic car out of the snow and ice of winter. The rental agreement provides for $100/month rent and Farmer Frank has the only access to the barn. Scenario

B: Hiring a moving company to move your belongings to a new residence. Scenario

C: Loaning your lawnmower to your neighbor. Scenario

D: Parking your car in a "park and lock" parking lot.

Answer 1

Answer:

A bailment is a process where an owner of the item or items transfers the items to another party so that they can hold it temporarily for their use. The person who owns the items and transfers it to the other party is known as bailor and the person who receives the items is known as bailee. A bailment is a contact where upon the accomplishment of the use of items, bailee is required to return the items in their original condition to the bailor on the promised date.

There are three types of bailment viz. Transfer of goods for the benefits of the both; bailor and bailee, transfer of items for the sole benefits of the bailor and transfer of items for the sole benefits of the bailee.

Scenarios:

A]. Renting storage space in Farmer's Frank's huge barn to keep your classic car out of the snow and ice of winter. The rental agreement provides for $100/month rent and Farmer Frank has the only access to the barn.

Answer: The above scenario is an example of bailment where farmer frank has transferred his huge barn to the person who owns the classic car. In this case, the bailor is farmer frank and bailee is the person who owns the classic car. The type of bailment involved is “Transfer of goods for the benefits of both the parties” since farmer frank is receiving $100 per month and the access to the barn is limited to him only and the person who owns the classic car has the benefit of keeping his classic car out of snow and ice of winter.

B]. Hiring a moving company to move your belongings to a new residence.

Answer: The above scenario is not an example of bailment since the goods has not been transferred between the parties. Moving company is only responsible for shifting of belongings from one place to the other.

C]. Loaning your lawnmower to your neighbour.

Answer: The above scenario is an example of bailment where the owner of the lawnmower has transferred the lawnmower to his neighbour. In this case, bailor is the owner of the lawnmower and bailee is the neighbour. The type of bailment involved is “transfer of items for the sole benefits of the bailee” since only neighbour will be benefitted from the service of the lawnmower.

D]. Parking your car in a "park and lock" parking lot.

Answer: The above scenario is not an example of bailment since the goods has not been transferred between the parties. “Park and Lock” company is only providing the service of parking the car and the car or the parking space has not been transferred between the parties.