PART IV
BAILMENTS
225. Bailment Defined. A bailment has been defined to be "A delivery of goods for the execution of a special object, beneficial to the bailor, the bailee or both, upon a contract express or implied, to carry out this object, and dispose of the property in conformity with the purpose of the trust." It is the giving possession of personal property to another for the purpose of having the property cared for, improved or used, with the understanding that when the purpose of the delivery is fulfilled, the property shall be returned to the bailor or disposed of according to his directions.
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. If A delivers property to B, a transportation company, to be conveyed to C, the transaction is a bailment. If A loans his knife to B, the transaction is a bailment.
226. Parties to a Bailment Contract. There are two parties to a bailment contract. The one who gives possession of chattel property to another, reserving title to himself, is called the bailor, and the one who receives possession of the property under these conditions is called the bailee. A bailment is a contract. Parties to a bailment must be competent to contract. (See Competency of Parties, chapter on Contracts.) Parties under legal age may avoid contracts of bailment. If A, fifteen years of age, hires a horse from B, a liveryman, for one hour for $2.00, B cannot compel A to carry out his contract if A objects on the ground of infancy. But if A injures the horse he is liable in damages to B. An infant is liable for his torts, but not for his contracts.
227. Classification of Bailments. Bailments are usually divided into three classes; bailments for the sole benefit of the bailor, bailments for the sole benefit of the bailee, and bailments for the benefit of both the bailor and bailee. A common example of a bailment for the sole benefit of the bailor is a delivery of property to the bailee, to be kept by the bailee gratuitously for the accommodation of the bailor, or delivery of property to the bailee to have work performed on it, without compensation to the bailee. Examples of bailments for the sole benefit of the bailee are loans to the bailee without compensation to the bailor. Bailments for the mutual benefit of bailor and bailee include deliveries of property to carriers, pledges, renting property, or hiring the bailee to perform work on the property bailed, or hiring the bailee to care for the property.
228. Elements of a Contract of Bailment. It is sometimes said that a bailment for the sole benefit of the bailor is not a contract by reason of there being no consideration. A consideration may consist of any benefit to the party making a promise, or any detriment to the one to whom the promise is made. The giving up of the property bailed to the bailee is considered a detriment to the bailor, even though the bailee receives no benefit. For a transaction to constitute a bailment, there must be a delivery of the property bailed to the bailee, and an acceptance by him of the property. This delivery may be actual or constructive, as by delivery of a warehouse receipt, or a bill of lading. The delivery must be sufficient to enable the bailee to secure the possession of the goods, and to control the possession during the period to be covered by the bailment, to the exclusion of the bailor. The property must be in existence to be bailed. A contract of bailment need not be express; it may be implied as well—a thief or a finder of property is a bailee for the true owner.
229. Title to Property Bailed. The title to property bailed does not pass to the bailee. Mere possession passes to the bailee. It is not necessary that the bailor have title to the property to bail it. If he has right of possession he may, under certain circumstances, bail it. A may rent a livery stable, including horses and carriages, of B, for three years, with the understanding that he will operate the business in the usual way. A does not have title to the horses and carriages, but he may hire them to C, or to anyone he chooses. This transaction with C constitutes a bailment, in which the bailor does not have title to the property bailed. He has, however, sufficient right of possession to enter into a bailment contract. The principal distinction between a bailment and a sale of personal property is that, in the latter case, title passes to the purchaser regardless of change of possession of the property, while in the case of a bailment, possession of the property must pass to the bailee, while title is not disturbed.
230. Bailments for the Sole Benefit of the Bailor. Where personal property is deposited with another for safe keeping, or for the purpose of having work performed on it, without compensation to the bailee, the transaction is called a bailment for the sole benefit of the bailor. The liability of a bailor for the loss or injury of property intrusted to his care, depends upon the nature of the property itself, and upon whether the bailee receives compensation for his services. Three degrees of care and negligence, respectively, are recognized in bailments; slight, ordinary and great care, and gross, ordinary and slight negligence. What constitutes ordinary care or negligence is determined by considering what a man of ordinary prudence would do under the circumstances in question. Any case of negligence above or below this standard constitutes great care or gross negligence. If A, in going to lunch, leaves his umbrella in B's office, and the umbrella is stolen, B is not liable to A, if he exercised slight care. If A, a lawyer, is obliged to go to police court to try a criminal case, and leaves his diamond pin with B, a brother attorney, B is obliged to exercise only slight care, as in the case of the umbrella, and is liable only for gross negligence. But slight care means a much greater degree of care in case of the diamond pin than in the case of the umbrella. In case of a bailment for the sole benefit of the bailor, the bailee is obliged to exercise only slight care, and is liable only for gross negligence. He receives no compensation for the service, and for this reason is not obliged to exercise a great degree of care. Property cared for gratuitously for the accommodation of the bailor, or to be carried to some place, or to have something done to it gratuitously, constitutes this class of bailments.