BAILMENT FOR HIRE Meaning and
Definition
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Bailment for hire refers to a legal arrangement where one party, known as the bailor, entrusts their property or goods to another party, known as the bailee, for a specific period of time in exchange for monetary compensation. This contractual agreement typically involves the temporary transfer of possession and control of the property, with the understanding that the bailee will return the property to the bailor in the same condition it was received, subject to fair wear and tear.
Under a bailment for hire, the bailee is responsible for exercising reasonable care and diligence in safeguarding the property, ensuring its proper use, and preventing any damage or loss. This duty of care implies that the bailee must take reasonable precautions to protect the bailor's property and can be held liable for any negligence or breach of contract resulting in damage or loss.
This arrangement is commonly seen in various commercial and rental services where the bailor provides their property to the bailee for temporary use, such as renting a car, leasing equipment, or storing goods. The bailor generally retains ownership of the property throughout the bailment period, while the bailee has possession and control.
Overall, bailment for hire serves as a legal framework for temporary possession and control of property in exchange for compensation, ensuring that both parties have their respective rights and responsibilities protected under the law.
