What is a bailment?

What is a bailment?

What is a bailment?

A bailentis a temporary transfer of possession of goods from abaiolor to a bailee. There is a bailment whenever one person knowingly, willingly and voluntarily comes into the position of goods belonging to another person, whether by contract or not, on the understanding that the goods will be returned or disposed of as agreed. People pass possession of their goods to someone else when they leave the car at a garage to be serviced, deliver goods on approval or on sale or return, and leave goods with acourierfor transportation. For there to be a bailment, the owner of the goods retains ownership of the goods, the person receiving the goods has temporary possession and control the goods, possession of the goods must return to their owner, or go to a third person as directed by the owner. The person in possession of the goods has a better title than anyone except the true owner.

This concept involves the transfer of possession by the bailor to the bailee. If there is no transfer of possession, the relationship may be a licence, not a bailment, a licence is an authority to use land or other premises to deposit or leave goods. The difference is important because the licensee owes a licence or a lower duty of care than in the case of a bailment relationship. A good example of this is the case of Greenwoodv Council of the Municipality of Waverley 1928 28 SR (NSW) 219. In this case someone a locker at Waverley councils dressing sheds at Bondi Beach. The person placed his clothes in a locker, locked it, return the key to the tendon and went to the beach. When he returned, the locker was empty. The person sued the council, claiming that it wasa baileeof his clothes. He failed, just depositing clothes in a high locker was not enough to prove a bailment even though the attendant retain the key while the person was at the beach.

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