Bailee

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.

BREAKING DOWN '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. Property

    1. Anything over which a person or business has legal title. ...
  5. Lease

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

    An arrangement whereby goods are left in the possession of another ...
Related Articles
  1. Options & Futures

    Understanding The Escrow Process

    Learn the 10 steps that lead up to closing the deal on your new home and taking possession.
  2. Personal Finance

    Avoiding Foreclosure Scams

    If you want to save your home, avoid bogus offers and take matters into your own hands.
  3. Economics

    Obama’s Final Gesture to Expand Retirement

    President Obama has announced that the 2017 congressional budget will feature an attempt to expand access to qualified retirement savings accounts for workers.
  4. Economics

    Explaining Statute Of Limitations

    A statute of limitations sets the maximum time that parties have to initiate legal proceedings from the date an alleged offense occurred.
  5. Personal Finance

    4 Famous People Whose Finances Were Under Conservatorship

    Understand what conservatorship is and how it comes about during the legal process. Learn about four celebrities who were placed under conservatorship.
  6. Investing Basics

    How To Handle A Serious Dispute With Your Broker

    Find out what to do if you have a dispute with your broker.
  7. Fundamental Analysis

    How 4 Companies Are Changing the Legal Industry

    An overview of four companies transforming the way consumers and businesses interact with lawyers.
  8. Investing Basics

    10 Facts You Didn’t Know About Amazon (AMZN)

    Learn some interesting facts about Amazon.com Incorporated, the history behind Amazon's name and the hidden services and technologies that Amazon offers.
  9. Personal Finance

    The World's Top 10 Law Firms

    Here is a list of world's top ten law firms in terms of revenue.
  10. Entrepreneurship

    Alternatives To Business Bankruptcy

    Bankruptcy isn't the only alternative for a struggling business. It can try negotiating with creditors or liquidating assets outside the U.S courts.
RELATED FAQS
  1. What is the difference between legal liability and public liability?

    When you see the term "public liability" attached to a business, its products or its services, it refers to a specific type ... Read Full Answer >>
  2. What kinds of financial instruments are designated as “Securities” by Cabinet Order?

    In Japan, securities are regulated by the Diet and the Financial Services Agency, or FSA. Rulings about securities come down ... Read Full Answer >>
  3. What's the difference between cash-on-delivery differ and delivery against payment?

    Cash on delivery and delivery versus payment describe different procedures and timing of payments. Cash on delivery describes ... Read Full Answer >>
  4. What are the different ways I can file my income tax return?

    In contractual law, a letter of intent is a document that represents an agreement between parties before the final agreement ... Read Full Answer >>
  5. How are corporate poison pills regulated in the United States?

    The Delaware Supreme Court was the first legal authority to declare poison pills a valid initiative. This defense is either ... Read Full Answer >>
  6. How legally binding is a letter of intent?

    A signatory may be bound to a letter of intent depending on how the letter is drafted. In a business-to-business transaction, ... Read Full Answer >>
Hot Definitions
  1. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  2. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  3. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  4. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  5. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
Trading Center