Bailment is when you give your belongings to another person temporarily. The person will have physical custody and control of the items but not necessarily the right to use it. The person also is responsible for the safekeeping and return of the items. A bailment agreement is written to control the transaction.

Examples

When you park your car in a monitored garage or with a valet, that is a bailment agreement. Placing items in a bank safe deposit box is a type of bailment. Items are left in a storage unit under a bailment agreement. A common use for a bailment agreement is when an employer gives an employee use of a laptop computer that is regularly taken off the premises.

Terms

The bailee is the person receiving the item and agreeing to store and protect it. The bailor is the person who surrenders his property.

Types

Service agreement bailments include storage units and car valet. Involuntary bailment happens when you are delivered someone else's package. A constructive bailment is implied by law and happens when a former roommate or an ex leaves property behind. A gratuitous bailment is when a person finds lost property and protects it or delivers it to the police until the owner can be located.

Abandoned Property

Bailments do not last indefinitely. If the bailor fails to pick up or claim their property at the end of the agreed term or within a reasonable time, the items are considered abandoned. At this point, voluntary bailments become involuntary. Before disposing of the property, the bailee must give notice that she no longer wishes to keep the property.

Bailee's responsibilities

If an item is lost or damaged, the bailee can be sued for damages. The bailiee can also be legally liable if he uses the property without permission or refuses to return the property. A voluntary bailment agreement will mean greater liability for loss than a gratuitous bailment. A properly written contract can excuse the bailee from some responsibilities.

Source:

Lawyers.com: Bailment