Law for Commerce
discuss the different ways in which a balminess may be created the duty on the various types of bailees .
compare a bailee to a common carrier and to an innkeeper
Introduction
Bailment is a type or nature of business arrangement where a bailor who lawfully owns some
goods gives possession to another person known as bailee for certain specific purpose. Most
businesses have similar arrangements where due to the nature of the business, the possession of
goods is transferred to another person in different location for the selling purposes of storage
maybe in a warehouse but the title of goods remains with the owner (Chandra, 2007).
The other examples of bailment are goods that have been left behind for repair services like in a
garage where vehicles are left under someone else possession or other types of repair services.
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There are several types of bailment. In some cases a second bailment known as sub-bailment
may again take place. This occurs where a person in possession of someone else’s goods as a
bailee transfers them to the possession of another person to hold as a second bailee.
There are various types of bailment; Gratuitous bailment, bailment for reward and storage of
goods. Common Carriers usually operate the business or trades in carriage of goods and is
compensated for the service undertaken. For example a railway company or a road transports
company. They are largely insurers of the goods and are legally liable to any damages to the
goods. The difference is that the bailment of goods for example, to a storage warehouse is that
where as the warehouse may allow constant supervision from the bailor, a common carrier has
absolute control over the goods hence the high standards of the duty of care.
The innkeepers are responsible for the goods that guests bring in their establishments. The
relationship is not exactly bailment as the visitors have also control over their own goods.
However, the innkeepers are required by law to provide a place for safe keeping of valuables and
where they would be responsible in case of any loss.
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References
Chandra, G. (2007) Company Law, 3rd Edition; McGraw-Hill Education
