Bailee - Definition - Law Dictionary Home Dictionary Definition bailee

Definition :

Bailee, a person to whom goods are entrusted for a specific purpose. See BAILMENT; as to Larceny by Bailee, see (English) Larceny Act, 1916, ss. 1 and 2.

The party of whom personal property is delivered under a contract of bailment; one to whom goods are bailed. (Contract Act, 1872, s. 148)

Where in an accident the Insured dealt with vehicle strictly as provided under the contract of insurance and that necessitated taking the car to the nearest repairer for and on behalf of the Insurer. The Insurer became the bailee and the repairer may have been initially pointed out by the bailor but with whom the Insurer entered negotiation, arrived at a contract and agreed to get the car repaired in discharge of an obligation under the contract of insurance. Therefore, for this additional reason the custody of the repairer is that of a sub-bailee, N.R. Srinivasa Iyer v. New India Assurance Company Limited, AIR 1983 SC 899: (1983) 3 SCC 458 (467).

Means an individual or entity (as a business organization) having possession of another's personal property under a bailment, Webster's Dictionary of Law, p. 41.