What is a Bailment?
When a tow company takes possession of a vehicle, a variety of legal obligations are impacted. One of these is the creation of a bailment. A bailment describes a legal relationship where physical possession of property is transferred from one person to another person. In the tow business, a bailment is established once a motor vehicle belonging to someone else comes into the possession of the tow company. The owner of the vehicle is “bailor” and the tow company is the “bailee.” But what do these fancy legal words mean?