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

Which party benefits most in a gratuitous bailment?

1. The bailor

2. The bailee

3. Both parties equally

4. Neither party benefits

The correct answer is: The bailor

In a gratuitous bailment, the arrangement involves the bailor providing possession of their property to the bailee without receiving any payment or benefit in return. This type of bailment primarily operates for the benefit of the bailee, as they receive a valuable asset to use or care for without any obligation to compensate the bailor. However, the bailor also benefits in the sense that they may regain their property at a later time or may feel satisfied in being able to help someone by allowing them to use their property. The distinction here rests on the degree of benefit each party receives. While the bailee benefits from having the use of the property, the bailor retains ownership and control over their asset. The statement that the bailor benefits the most highlights their ability to maintain ownership and retrieve their property when the bailee has finished using it, in a free-of-charge context. The literal "gratuitous" nature implies that the bailee does not owe compensation, thus emphasizing the bailor's beneficial position in having given permission for use without relinquishing ownership or incurring a liability.