Bailor Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Bailor, written in plain English, along with examples of how it is used.
What is Bailor?
(n) Bailor is the person who leaves the custody of a property owned or legitimately possessed by him to another person or legal entity for safe keeping of such property and returning the same after the specified period or event. Bailor can hold the custodian for any damages caused to the property when he fails to protect the goods.
History and Meaning of Bailor
The term 'bailor' is derived from the French word "bail," which means "to deliver." Under common law, 'bailor' refers to the person who temporarily transfers the physical possession of their property to another entity or person. The property is usually transferred for a specific purpose or a particular period. Bailor retains the ownership interest in the object but gives up the immediate control during the custody period.
Examples of Bailor
- John leaves his car for repair with a garage; John is the bailor, and the garage is the bailee.
- Jane delivers her diamond to her bank vault for safekeeping while she goes on a long vacation. The bank is the bailee, and Jane is the bailor.
- A homeowner gives her keys to a property manager to show her house to potential tenants. The homeowner acts as the bailor, while the property manager is the bailee.
Legal Terms Similar to Bailor
- Bailee: the person or entity who takes temporary possession and control of the property. Bailee incurs responsibility for the property's safety and return to the bailor.
- Bailment: a relationship created by the delivery of personal property by the bailor to the bailee or custodian for a specific purpose.
- Trustor: Person who creates a trust agreement and arranges to transfer assets into the trust.
- Settlor: A person who sets up a trust or settles property for the benefit of others.
- Lessor: The party that grants the right to possess and use its property temporarily to someone else in exchange for rent.