Bailment

Definition and stakes

Portrait of Jacob Abbott Jacob Abbott,  Rollo's Museum

“ He placed confidence in Rollo’s account of the facts, and having thus ascertained how the case stood, he began to consider what was to be done.
“It is a case of bailment,” said he to Rollo, “and the question is, whether you are liable.”
“A case of what?” said Rollo.
“Bailment,” said his father. “When one person intrusts another with his property for any purpose, it is called bailing it to him. The wallet and the money were bailed to you. The law relating to such transactions is called the law of bailment.
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Source: Gutenberg

Portrait of Stephen Johnson Field Stephen Johnson Field,  Preston v. Prather — Opinion of the Court

“ From these facts the court was of opinion that the bonds were held by the defendants as collateral to meet any sums which the plaintiffs might overdraw; and the accounts show that they did subsequently overdraw in numerous instances. The deposit, by its change from a gratuitous bailment to a security for loans, became a bailment for the mutual benefit of both parties; that is to say, both were interested in the transactions. For the bailor it obtained the loans, and to that extent was to his advantage; and to the bailee it secured the payment of the loans, and that was to his advantage also. ”
Source: Wikisource

American School of Correspondence,  Cyclopedia of Commerce, Accountancy…

“ A bailment differs from a sale in that the title to the property remains in the bailor, and possession is given the bailee, while in a sale, the title or ownership of the property is transferred to the purchaser, while possession may remain in the seller. Bailment is a broad subject covering many transactions. Loans, pledges, and deliveries of property of every nature, in which mere possession is given another without transfer of title are included. If A leaves his watch with B, a jeweler, for repairs, the transaction is a bailment. ”
Source: Gutenberg

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