Legal Definitions - bailee (custodian)

A bailee is a person or entity who receives possession of someone else's property or goods through a contract called a bailment. The bailee is responsible for taking care of the property or goods and returning them to the owner (bailor) when the contract is fulfilled.

Unlike a sale, where ownership of the property or goods is transferred to the buyer, a bailee only has temporary possession and must return the property or goods to the owner. A bailee is also known as a custodian.

Examples of bailees include:

• Banks holding bonds
• Storage companies where furniture or files are deposited
• Parking garages
• Kennels or horse ranches where animals are boarded

These examples illustrate the definition of a bailee because in each case, the bailee is taking temporary possession of someone else's property or goods. The bailee is responsible for keeping the property or goods safe and returning them to the owner when the contract is fulfilled.