Case Study of Commercial Law in Action; Rights and Responsibilities of The Commercial World

Athabasca University — LGST 369: Commercial Law

Eleni owns and operates a restaurant. During the winter months, it is inappropriate for diners to bring their coats with them to their table. Eleni, therefore, provides a place for coats to be placed or hung.

Seasons change and people adapt to them. Businesses need to as well.

This is rather typical of restaurants throughout Canada as the winter months are harsh and unpredictable at times. Eleni is right to want to have a solution for this to improve her customer’s comfort and experience at her establishment. Though it comes with its concerns depending on who is responsible for that item once it’s removed from the customer.

Bailment, another important type of arrangement of property, occurs when someone temporarily gives up possession of their property expecting to get it back later (McInnes, Et Al, 2018). The bailor is the person who owns the property and the person who temporarily has it in their possession is the Bailee (McInnes, Et Al, 2018).

This includes a range of property types. Typically, it is personal property that’s moveable and easily transported between people. However, it can be real property in the case of house sitting. There are a lot of examples of this including rental equipment, shipping and deliveries, storage units, leasing or renting vehicles, borrowing books from the library and so many more (McInnes, Et Al, 2018).

It requires elements to ensure its bailment.

Contract
This is an implied or expressed contract where the bailor and bailee agree that there is a shift of temporary ownership. In the restaurant, if Eleni discusses the arrangement of taking her customers’ coats or jackets, or somehow acknowledges it, then it’s bailment (McInnes, Et Al, 2018).

Delivery of Actual Possession
The property has to be delivered by the bailor to the bailee to create the bailment. If Eleni or her staff take the items away from the vicinity of the customer, then it’s bailment (McInnes, Et Al, 2018).

Purpose
There needs to be a reason that the property was given by the bailor to the bailee. In Eleni’s case, the purpose was to…