GlossaryEN1 min readUpdated: Jun 13, 2026

Bailment liability

In bailment, one party (the bailee) temporarily takes goods of another party (the bailor) into custody.

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Last updated: 13 June 2026Published: 27 January 2026

Source: https://en.wikipedia.org/wiki/Bailment

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In bailment, one party (the bailee) temporarily takes goods of another party (the bailor) into custody. The bailee is liable for damage or loss during this period – but the extent of liability depends on the standard of care required, contract terms, and the nature of any fault. In practice, a distinction is made between gratuitous bailment (higher duty of care) and bailment for reward (slightly lower standard). Freight forwarders and warehouses often act as bailees and must clearly define their liability limits contractually.

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