A discussion of Bailments

November 21, 2011 § Leave a comment

In a prior post, I mentioned that the self storage industry arose out of a desire to permit someone to store property without creating a bailment. It occurred to me that many readers may not know what a bailment is.

A bailment is a relationship of trust created at common law where a person (the bailor) gives possession, but not ownership, of goods to another (the bailee) to hold for safekeeping. Think of valet parking or leaving a watch to be repaired or checking your coat at a restaurant. In each case, you entrust your property to another for safekeeping and safe return upon request. Prior to the 1960’s, this was what a warehouse was. A traditional warehouse still is today.

Self storage is different. In this case, a lessor-lessee relationship is created, not a bailment. Your tenant rents a unit,stores property and locks the space. The owner does not take possession of the goods and no liability is created. Care, custody and control remains with the customer.

This simple difference is the cornerstone of self storage.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

What’s this?

You are currently reading A discussion of Bailments at Bernard Fensterwald Associates.


%d bloggers like this: