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Bailment

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Business Law: Lecture 10

Bailment: Temporary transfer that allows you to transfer the possession for usage.
Example: Lease a Car

Types of Bailment: 1. Bailment for Value: when there is a payment for the usage of property.
Example: Leasing a rental car for a vacation/crossing the boarders.

2. Gratuitous Payment: when dealing with a payment that requires no transfer of funds. When there is a risk of money there is a higher standard because you’re making an economic performance.
Example: Borrowing the snow blower of your neighbor.

Obligations that comes with the contract:

1) Determine the service provided
Example: Rent a storage place, now you have a facility.
Example: Storage Wars, Homeland Security.

2) Deals with the notion of Payment terms: how much you’re paying for a month, if you don’t pay inside the terms they are entitled to seize it.
Example: How in storage wars they are bidding and auctioning storage units.

3) The extent for damage or loss. Example: When there is a delivery of a good by a company, whoever is under the control is responsible for the delivery. Unless they waive any liability in the agreement, they are responsible for reasonable care and diligence. Under the law in our society, normally the delivery company is liable for a value of $40; if we don’t specify a higher value they only pay the first $40. Example: Canada post, on the letter it’s protected if they lose the letter they’re done. Postal System is national security. Example: Let’s say there’s a virus coming from Western Canada, we need to ship vaccine as soon as possible, and distribution is easiest using the Postal Systems.

4) Remedies: what happens when there is a failure to perform.
Example: You return the goods and they are not in the appropriate condition. You are required to return the goods with the normal usage of the good.

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