Understanding Mutual-Benefit Bailment

What is a mutual-benefit bailment?

A. bailment for the sole benefit of the bailor B. mutual-benefit bailment C. bailment for the sole benefit of the bailee D. constructive bailment

Answer:

B. mutual-benefit bailment

A bailment in which both the bailee and bailor derive some benefit, and, as a result, each has rights and duties, is known as a mutual-benefit bailment. This type of agreement is characterized by both parties benefiting from the arrangement. An example of a mutual-benefit bailment is renting a car. In this scenario, the bailee (person renting the car) benefits from using the vehicle, while the bailor (the rental company) benefits from the rental fee paid by the bailee.

Therefore, in a mutual-benefit bailment, both the bailee and bailor have rights and responsibilities in the agreement, making it a mutually beneficial arrangement for both parties involved.