Civil Code > TITLE XVII. CONTRACTS FOR THE CUSTODY, USE OR POSSESSION OF CHATTELS 7

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Chapter 4. Bailment

Section 1. Bailment in General

Art. 2779 – Definition.

A contract of bailment is a contract whereby one person, the bailee, undertakes to receive a chattel from another, the bailor, and to keep it on the latter’s behalf.

Art. 2780 – Bailment, conditional sale and hire of services.

(1) Where the bailee has the option of retaining the chattel on the expiration of the contract, on paying its price, the rules of conditional sale shall apply and not those of bailment.

(2) Where the bailee undertook to repair the chattel or to transform it the rules of hire of services shall apply and not those of bailment.

Art. 2781 – Ownership of chattel.

(1) The bailor shall retain the ownership of the bailed chattel.

(2) The bailee shall return the chattel to him on the termination of the contract.

Art. 2782 – Bailment of consumable chattels.

(1) Where the chattel entrusted to the bailee is a sum of money or a certain quantity of consumable goods and the bailee has been authorized to make use of them, the rules relating to loans of money and other fungibles shall apply.

(2) Where the chattel entrusted to the bailee is a sum of money which has been banded over to the bailee unsealed and unclosed, the bailee shall be deemed to be authorized to make use of it.

Art. 2783- Use of bailed chattel.

(1) Where the bailment consists of other chattels, the bailee may not make use of them without the bailor’s authorization.

(2) Where he violates this rule, the rules governing the letting and hiring shall apply to his detriment.

(3) The bailor may in particular demand payment of a rent the amount of which shall be fixed equitably.

Art. 2784 – Gratuitous or paid bailment.

(1) Bailment shall be gratuitous where it is not apparent that the parties intended to provide for a remuneration to the bailee.

(2) In this regard, the professional standing of the bailee and all other relevant circumstances shall be taken into account.

Art. 2785 – Modification of circumstances of bailment.

(1) Where urgent circumstances so require, the bailee may keep the chattel under conditions other than those agreed upon and may in particular entrust the chattel to a third party or alienate it, where it is in imminent danger of loss or deterioration.

(2) He shall inform the bailor as soon as possible of these events.

Art. 2786 – End of bailment. – 1. Bailor’s right.

(1) The bailee shall return the chattel to the bailor as soon as the latter claims it, unless a fixed term has been provided in favour of the bailee.

(2) The bailor shall indemnify the bailee for expenses he has incurred in consideration of the agreed term.

Art. 2787 – 2. Bailee’s right.

(1) The bailee may at any time require the bailor to take the chattel back, unless a fixed term has been provided in favour of the bailor.

(2) Where no such term has been agreed, the court may grant the bailor a reasonable period within which to take the chattel back.

Art. 2788 – Several bailors.

(1) Where the chattel has been entrusted to the bailee by several bailors who are unable to agree upon the conditions on which the chattel is to be returned, the court shall fix such conditions.

(2) The provisions of sub-art. (1) shall apply where the bailor dies leaving several heirs and the chattel is indivisible.

Art. 2789 – Bailment in the interest of third party.

Where the bailment was made in the interest of a third party and such third party has informed the bailor and bailee of his agreement, the latter shall not return the chattel to the bailor without the third party’s consent.

Art. 2790 – Return of chattel.

(1) Where it has been agreed that the bailee shall keep the chattel in a certain place, it shall be returned in that place.

(2) The expense and risk of the return of the chattel shall in all cases be borne by the bailor.

Art. 2791 – Return of profits.

The bailee shall return the profits he has collected from the chattel.

Art. 2792 – Restitution to whom made.

(1) The bailee shall return the chattel to the bailor or to the person designated by him.

(2) He may require the bailor to prove that he is the owner of the chattel.

Art. 2793 – Bailor’s duties.

(1) The bailor shall pay the bailee the agreed remuneration.

(2) He shall indemnify him for all expenses incurred for the preservation of the chattel.

(3) He shall compensate him for all damage the bailment may have caused him, unless such damage is due to the bailee’s default or that of a person for whom the bailee is liable.

Art. 2794 – Lien.

The bailee may retain the chattel until all monies due to him in consequence of the bailment have been paid in full.

Art. 2795 – Bailee’s heir.

(1) Where he has alienated the chattel in good faith and in ignorance of the bailment, the bailee’s heir shall only repay the price he has received.

(2) Where the price has not yet been paid, the bailor shall be subrogated to the heir’s claim against the buyer.

Section 2. Bailment on Trust

Art. 2796 – Definition.

There shall be bailment on trust where a chattel, the legal position of which is in dispute or uncertain, is entrusted to a third party, the trustee, who keeps it and returns it to its lawful owner when the doubt has been resolved.

Art. 2797 – Appointment and dismissal of trustee.

(1) The trustee shall be appointed by agreement between the parties to the dispute.

(2) Failing such agreement, he shall be appointed by the court.

(3) The trustee may not be dismissed before he has completed his function, except where the parties so agree or for good cause.

Art. 2798 – Return of the chattel.

The trustee may not return the chattel except with the agreement of all the interested parties or upon an order of the court.

Art. 2799 – Reference to rules regarding bailment.

The rules of bailment shall apply in addition to those of this Section.

Section 3. Bailment in Distress

Art. 2800 – Definition.

There shall be bailment in distress where a person is compelled by urgent necessity to entrust to another the custody of chattels belonging to himself, in order to preserve them from imminent danger.

Art. 2801 – Special rules for bailment in distress.

(1) The person to whom the chattels are offered may not refuse to accept them without good cause.

(2) He may demand a remuneration where the bailment lasts for more than one week.

(3) The court may reduce the amount of the remuneration required by him at the time of bailment.

Art. 2802 – Forms and proof.

(1) Bailment in distress shall not be subject to any special form.

(2) It may be proved by any means.

Art. 2803 – Application of rules of bailment.

The rules regarding a contract of bailment shall apply in addition to those of this Section.

Section 4. Chattels Found, or Deposited with a Person without his knowledge

Art. 2804 – Finder’s rights and obligations.

(1) Whosoever has found a chattel and taken possession of it shall, by virtue of the law, be in the same position as a bailee.

(2) Nothing shall affect the provisions of the Title of this Code relating to “Individual Ownership” (Art. 1154-1158).

Art. 2805 – Deposit without the knowledge or against the will of another.

(1) The rules of bailment shall not apply where chattels have been deposited with a person without his knowledge or against his will.

(2) The person with whom chattels are thus deposited shall incur no liability as a consequence of the deposit.

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