bailment rules
Bailment Rules
How to create bailment?
(1) Possession
(2) Bailor must retain a superior interest in the chattel to that of the bailee
(3) Bailee must consent to take possession of the chattel
It is the bailee’s, and not bailor’s, consent that matters. Any person who voluntarily assumes possession of goods belonging to another will be held to owe at least the principal duties of the bailee. [Pioneer Container]
Moves the law of bailment into tort (ie voluntary assumption) as opposed to contract (mutual consent)
Change of owner of property ≠ automatic change of bailment relationship
Assuming that property of 1000 bottles had passed to B, there is also the question of whether B can sue X for breach of bailee duties. This is not possible because there is no bailment relationship between B and X. To create a bailment relationship between B and X, X as attornor must give his consent to hold the goods for the attornee B who is the new owner of the goods (SOGA 1974 s 29(4)). Since there is no such attornment agreement here, B does not have a cause of action against X.
Possession of documents
Third party usually does not have constructive possession over goods even if they possess the document of title to the goods. It depends upon further attornment by the third party to the holder of the document of title to the goods.
The exception to this rule is bill of lading. No attornment is required after the transferee has received delivery of the bill of lading, so long as it was delivered to him with the intention that he is to be given constructive possession of the goods.
Standard of care bailee is held to:
The standard of care does not vary according to whether the bailment is gratuitous or for reward.
Houghland v RR Low (Luxury Coaches) Ltd [1962] CA
Reverse standard of proof???
If a gratuitous bailee holds himself out to the bailor as able to deploy some special skill in relation to the chattel, his duty is to take such care of it as is
How to create bailment?
(1) Possession
(2) Bailor must retain a superior interest in the chattel to that of the bailee
(3) Bailee must consent to take possession of the chattel
It is the bailee’s, and not bailor’s, consent that matters. Any person who voluntarily assumes possession of goods belonging to another will be held to owe at least the principal duties of the bailee. [Pioneer Container]
Moves the law of bailment into tort (ie voluntary assumption) as opposed to contract (mutual consent)
Change of owner of property ≠ automatic change of bailment relationship
Assuming that property of 1000 bottles had passed to B, there is also the question of whether B can sue X for breach of bailee duties. This is not possible because there is no bailment relationship between B and X. To create a bailment relationship between B and X, X as attornor must give his consent to hold the goods for the attornee B who is the new owner of the goods (SOGA 1974 s 29(4)). Since there is no such attornment agreement here, B does not have a cause of action against X.
Possession of documents
Third party usually does not have constructive possession over goods even if they possess the document of title to the goods. It depends upon further attornment by the third party to the holder of the document of title to the goods.
The exception to this rule is bill of lading. No attornment is required after the transferee has received delivery of the bill of lading, so long as it was delivered to him with the intention that he is to be given constructive possession of the goods.
Standard of care bailee is held to:
The standard of care does not vary according to whether the bailment is gratuitous or for reward.
Houghland v RR Low (Luxury Coaches) Ltd [1962] CA
Reverse standard of proof???
If a gratuitous bailee holds himself out to the bailor as able to deploy some special skill in relation to the chattel, his duty is to take such care of it as is