A contract or an agreement under which one person entrusts his property to another, the bailee, on the understanding that it will later be returned or otherwise accounted for, e.g. delivered to a prescribed destination. The bailee can insure the property on a material damage or a liability basis, or as agent or trustee on behalf of the owner. As public liability policies exclude property in the insured’s custody or control, special policies, overriding the exclusion, are written for hotel proprietors, garage owners, etc.
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The act of delivering property in trust to another for a limited time and specific purpose.
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A bailment is the delivery of goods by one person to another for some purpose, upon a contract that they shall. when the purpose is accomplished, be returned or otherwise disposed of according to the Directions of the persons delivering them. The person delivering the goods is called ‘bailor’ and the person to whom they are delivered is called ‘Bailee.’ (Sec. 148 of the Indian Contract act, 1872).