Which of the following statements is correct with respect to the creation of a bailment?
A) For a bailment to be created, the property must be given with the understanding that payment would be given for the service.
B) A bailment is not created when the transfer of the property is only done incidentally, such as leaving a watch with a watchmaker for repair.
C) For a bailment to be created, it is necessary for the parties to have anticipated that the property would be returned at the end of the bailment period.
D) A bailment is the process provided for releasing people from jail before trial.
E) Bailments can only be created through contracts.

Question

Quizplus · Accepted Answer

For a bailment to be created, there must be an understanding that the property will be returned to the owner at the end of the bailment period. Choice A is incorrect because payment is not necessary for a bailment to be created. Choice B is incorrect because incidental transfers can also create bailments. Choice D is incorrect because bailment refers to the transfer of property, not the release of people from jail. Choice E is incorrect because bailments can also be created without a formal contract.

Which of the Following Statements Is Correct with Respect to the Creation