Business LawTU Board 2081 (old course)
Who is bailor?
2Answer
A bailor is a party in a bailment contract who temporarily transfers possession (but not ownership) of goods to another person, called the bailee, for a specific purpose. The bailor retains legal title to the goods and expects their return in the same condition after the bailment period or purpose is fulfilled.
Key features of a bailor include:
- Possession transfer: The bailor hands over physical control of the goods.
- No ownership transfer: The bailor remains the legal owner.
- Right to reclaim: The bailor can demand the return of the goods once the bailment purpose is completed.
- Liability: The bailor is generally not liable for loss or damage unless negligence is involved.
Examples include:
- A customer leaving luggage at a hotel.
- A landlord giving a tenant a security deposit.
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