Bailment: A Special Kind of Contract

What is a bailment?

True or False

Answer:

False

A bailment is a special kind of contract that can occur in both business and personal affairs. It involves one person delivering goods to another for a specific purpose. A bailment is a special kind of contract where one person (the bailor) delivers goods to another person (the bailee) for a specific purpose, with the understanding that the goods will be returned or disposed of according to the bailor's instructions.

It is true that bailments are widely used in business transactions such as warehousing, leasing, and transportation. However, bailments can also occur in personal affairs, such as when borrowing a friend's car or leaving your coat at a cloakroom.