Also known as: bailments · bailee · bailor · bailer · bailed goods · deposit · gratuitous bailment
Written by attorneys · grounded in primary & secondary sources — see below
A transfer of possession of personal property by one person (the bailor) to another (the bailee) for a specific purpose under an express or implied contract. Title remains with the bailor. The bailee owes a duty of care that varies with the type of bailment.
Benjamin Brooks deposited client settlement funds into his trust account at a bank that charged monthly fees. To cover those fees without using client money, Brooks added a minimal personal deposit. The arrangement created a bailment of the client funds, with Brooks as bailee required to keep the funds separate and return them intact upon demand.
Bella Barnes sold goods to a buyer who later repudiated the contract. Barnes instructed the carrier bailee holding the goods in transit to stop delivery. The bailment relationship allowed the carrier to hold the goods for Barnes until she could reclaim them or resell.
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Byron Bishop opened an account at a bank and designated his sister as beneficiary payable on death. The bank held the deposited funds as bailee under the account terms. Upon Bishop's death the bank delivered the balance to the named beneficiary outside probate.
Bernard Bass received stolen cash and a weapon from his client and placed them in a new safe deposit box. The box created a bailment between Bass and the bank. Because Bass had no lawful justification for concealing the items, the bailment did not shield him from liability for obstructing justice.
Bianca Blanco received a large retainer from a client before performing any work. She deposited the funds into her client trust account. The deposit created a bailment in which Blanco held the money as bailee and could withdraw it only as fees were earned.
Bharat Bhatia contributed to a judicial candidate's campaign hoping to receive court-appointed work. The contribution did not create any bailment of client property. The rule prohibits such contributions when made to obtain government legal engagements.
A bailment transfers only possession of personal property while title remains with the bailor. A sale transfers both possession and title. The distinction matters because a bailee must return the specific item or its equivalent, whereas a buyer owns the goods outright.
Supporting sources
The standard depends on who benefits. In a mutual-benefit bailment the bailee must exercise ordinary care. In a bailment solely for the bailor's benefit the bailee is liable only for gross negligence. In a bailment solely for the bailee's benefit the bailee must exercise great care.
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Generally no. A bailee has only possession and cannot pass title to a buyer. An exception exists under UCC § 2-403(2) when the bailee is a merchant who deals in goods of that kind.
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A bailment can arise by implication when one person delivers personal property to another with the understanding that it will be returned or dealt with according to the owner's directions. Courts look to the parties' conduct and the circumstances of delivery.
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…cognizance. The Bank of the United States has constitutionally a right to establish branches or offices of discount and deposit within any State, and the State within which such branch is established cannot, without violating the Constitution, tax that branch. The State governments have no right to tax any of the…