Paralegal Advanced Competency Exam (PACE) Practice Exam

Who is referred to as the bailee in a bailment agreement?

1. The person who temporarily transfers property

2. The individual who receives the property

3. The court overseeing the case

4. The trustee managing bankruptcy

The correct answer is: The individual who receives the property

In a bailment agreement, the bailee is indeed the individual who receives the property. This person is entrusted with the care and control of the property for a specific purpose, which might involve the storage, maintenance, or transportation of the property. The bailee has a legal obligation to safeguard the bailed property and return it to the bailor after fulfilling the purpose of the bailment. This arrangement highlights the relationship between the bailee and the bailor, wherein the bailor temporarily relinquishes possession of the property but retains ownership. Understanding this relationship is crucial, as it dictates the rights and responsibilities of each party involved in the bailment. Knowledge of this concept is fundamental in various legal contexts, especially in property law and contracts, where the duties and liability of the bailee can substantially affect the outcome of any disputes regarding the care of the property. Therefore, recognizing the role of the bailee is essential for grasping the dynamics of bailment agreements.