Future Business Leaders of America (FBLA) Business Law Practice Exam

What is a gratuitous bailment?

1. A bailment for mutual benefit

2. A bailment for the sole benefit of the bailee

3. A bailment for the sole benefit of the bailor

4. A bailment conducted for profit

The correct answer is: A bailment for the sole benefit of the bailor

A gratuitous bailment is characterized by the arrangement where the bailee does not receive any compensation or benefit from the bailment. In this scenario, the focus is solely on the benefit of the bailor. The bailor entrusts their property to the bailee without expectation of payment or mutual benefit. This type of bailment occurs frequently in situations where one party allows another to use their possessions without any financial transaction involved, such as lending a friend a book or allowing someone to borrow a tool for a short period. Understanding this concept is crucial because it highlights the difference between various types of bailments. In contrast to environments where both parties benefit or where the bailee is compensated, a gratuitous bailment does not create a scenario where the bailee is held to the same standard of care as in bailments for mutual benefit or for profit. Knowing the distinctions and the implications of a gratuitous bailment reinforces the principles of property rights and responsibilities within the law.