Bailee

AAA

DEFINITION of 'Bailee'

An individual who temporarily gains possession, but not ownership, of a good or other property under a bailment. The bailee is entrusted with the possession of the good or property by another individual known as the bailor. This relationship is based on a contractual agreement (a bailment) between the bailor and the bailee, which specifies the terms and purpose of the change in ownership.

INVESTOPEDIA EXPLAINS 'Bailee'

While the goods are in the bailee's possession, the bailor is still the rightful owner. However, the bailee is responsible for their safekeeping and eventual return. Typically, the bailee is not entitled to use the goods or property. A bailee can serve as the overseer of an investment portfolio for a specified time period, or can be appointed to manage a rental property in the owner's absence. The bailee ensures the assets are kept safe until the owner of those assets is able to resume management.

RELATED TERMS
  1. Bailor

    An individual who temporarily relinquishes possession but not ...
  2. Bailment

    The contractual transfer of possession of assets or property ...
  3. Collateral

    Property or other assets that a borrower offers a lender to secure ...
  4. Consignment

    An arrangement whereby goods are left in the possession of another ...
  5. Lease

    A legal document outlining the terms under which one party agrees ...
  6. Property

    1. Anything over which a person or business has legal title. ...
Related Articles
  1. Avoiding Foreclosure Scams
    Personal Finance

    Avoiding Foreclosure Scams

  2. Understanding The Escrow Process
    Options & Futures

    Understanding The Escrow Process

  3. What To Do When You're Left Out Of A ...
    Personal Finance

    What To Do When You're Left Out Of A ...

  4. How to Hire a Bankruptcy Lawyer
    Personal Finance

    How to Hire a Bankruptcy Lawyer

comments powered by Disqus
Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
Trading Center