bailment

Bailment is a legal relationship at common law, where the owner of personal property ("chattel") transfers physical possession of that property to another, who holds the property for a certain purpose, while the transferor retains ownership. The owner who surrenders custody of a property is called the "bailor" and the individual who accepts the property is called a "bailee". The bailee is the person who possesses the personal property for the owner for a set time and for a precise reason and who delivers the property back to the owner when they have accomplished the purpose that was initially intended.

==General== Bailment is distinguished from a contract of sale or a gift of property, as it only involves the transfer of possession and not its ownership. To create a bailment, the bailee must both intend to possess, and actually physically possess, the bailable chattel, for example, a car mechanic business when a car has been dropped off for repair. Although a bailment relationship is ordinarily created by contract, there are circumstances where lawful possession by the bailee creates a bailment relationship without an ordinary contract, such as an involuntary bailment. A bailment relationship between the bailor and bailee is generally less formal than a fiduciary relationship.