TODAY'S TOPICS ARE:
1. The definition of BAILMENT 2
2. Some types of BAILEE 2
3. Creation of BAILMENT 3
4. Duties of BAILEE and BAILOR 3
5. Rights of BAILEE 3
6. Case studies 4
BAILMENT
1. THE DEFINITION OF BAILMENT
Bailment is when one party (Bailor) surrenders possession of goods to another (bailee) to be returned or disposed of as directed by the bailor, when the reason for the bailment is complete.
The existence of valid BAILMENT requires 3 conditions to be met;
a) The BAILOR retains title and ownership.
b) The BAILEE only has temporary possession and control of the property.
c) The property must be returned to the BAILOR in identical condition.
Bailment usually occurs in either of the following 2 ways:
a) When the owner of the property leaves it in someone's possession for the purpose of having a service performed (e.g. Shoes repaired, dry cleaning).
b) In the case of borrowing or renting property, whether or not there is a commercial interest.
The major point in both cases is that the bailor voluntarily surrenders possession, but not ownership.
2. SOME TYPES OF BAILEE
a) Warehouseman
b) Carriers (Gratuitous, Private and Common)
c) Hotelkeepers
d) Car Parks
e) Repairers of goods
3. CREATION OF BAILMENT
Bailment can be created by contract, the receipt being proof of contract, but sometimes it arises from a non-contractual situation. Examples of non-contractual bailment include:
a) SUB-BAILMENT [Morris v. C.W. Martin and Sons, 1965]
b) GRATUITOUS BAILMENT [lending a book to a friend]
c) INVOLUNTARY BAILMENT [receiving unsolicited goods by mail]
4. DUTIES OF BAILEE AND BAILOR
Bailee - To exercise due care
To retain possession
To avoid unauthorised use
To return the goods
Bailor - Not to interfere with the bailee's possession
To make known any danger
5. RIGHTS OF BAILEE
The bailee has rights against the bailor for non-payment. They are:
a) Damages
b) Right of lien
c) Right of sale
CASE STUDIES
Does BAILMENT occur in the following situations, and if so what would the outcome be?
a) Andrew goes to the theatre for a show and leaves his coat with and attendant. When he goes to collect his coat he finds that it has been stolen.
b) John leaves his car at the Carway Car Park, which is unattended. When he returns, he finds the care gone.
c) Hubbard wished to go swimming at his local pool but, as he had some valuables on him, he wished to use a locker. He paid a fee for the privilege and received a numbered disc which he had to produce in order to have the attendant unlock the locker. When he returned from his swim, the locker was bare.
d) A farmer gratuitously lent another farmer a hay bailer. When new, the machine had a guard but the guard had subsequently been removed by the farmer. The farmer instructed the borrower how to use the machine and warned him to keep his children clear of the machine when it was operating. The borrower operated the bailer with the help of his 15-year-old son whose leg was caught in the machine and injured.