What is required for a bailment to be established?

For a bailment to be established, there must be a specific purpose for the goods involved in the transaction. Bailment occurs when the owner of a physical item (the bailor) temporarily transfers possession of the item to another party (the bailee) for a specific purpose, such as repair, storage, or transportation. This temporary transfer does not affect the ownership of the item; the bailor retains ownership throughout the bailment period.

The specific purpose distinguishes bailment from other legal concepts, such as a simple transfer or gift. It is this clear intention regarding the handling and use of the goods by the bailee that creates the obligations and rights of both parties during the bailment.

Monetary transactions, legal representation, and the necessity for a written contract do not inherently establish bailment. It is entirely possible for bailments to occur without a payment or formal written agreement, provided that the parties involved understand the arrangement and its terms.