TheTaxHeaven Dictionary - Know the meaning of tax

What is Bailment?

Bailment involves a legal relationship where one party transfers property possession to another, but retains ownership. 

Bailment Categories

There are three types of bailment: 

  • Benefiting the bailor

  • Benefiting the bailee

  • Benefiting both parties

Termination of Bailment

Bailment can end due to: 

  • Fulfillment of purpose

  • Time expiration

  • Damage to the property

  • Termination by the bailor or bailee

Bailment Process

In bailment, the bailor allows the bailee to handle and use an item for a reason. After fulfilling the reason, the bailee returns the item. The bailor might pay the bailee if agreed upon beforehand.