Bailment: Understanding the Transfer of Possession

Is the actual ownership of goods necessary to create a bailment?

A. True

B. False

Answer:

The claim that the actual ownership of goods is necessary to create a bailment is false.

Final answer: The claim that the actual ownership of goods is necessary to create a bailment is false. Rather, possession is transferred from a bailor to a bailee, with the bailor only needing lawful possession, not actual ownership, of the goods. An example of this is a rented car.

Explanation: The statement 'Actual ownership of goods is necessary to create a bailment' is False. Bailment is a legal term defined as the transfer of possession, not ownership, of tangible personal property from one person (the 'bailor') to another person (the 'bailee') for a particular purpose. Therefore, contrary to the question, the bailor does not need to be the actual owner of the goods; just needs to have lawful possession. For instance, a rented car would be a common example. The renter (bailor) hands possession of the car to you (bailee) for a specified time, although the ownership of the car remains with the car rental company.