First Principles of Business Law

3. Property rights in chattels

3.5.4. Bailment for safekeeping

In the course of his business, Albert has collected together ten boxes of documents and other records which he wants to keep safe somewhere until he has completed his move into the new factory. He has no space at home to store these boxes, so he asks Bertrand, who has a warehouse nearby, if he will store the boxes for him for a couple of months. Bertrand agrees to do this, saying he will not charge for the service.

Which of the following statements is correct?

(a) In these circumstances, although no payment is required, a legal relationship of bailor and bailee arises between Albert and Bertrand, giving rise to legally enforceable rights and duties.

(b) In these circumstances, because no payment is required, no legal relationship of bailor and bailee arises between Albert and Bertrand.