In a bailor/bailee relationship, who is the bailee?

In a bailor/bailee relationship, the bailee is the party that receives possession of goods or property from another party, known as the bailor, for a specific purpose under the condition that the property will be returned once that purpose has been fulfilled or otherwise disposed of as agreed.

In this context, when considering the relationship between the bank and a customer, the bank acts as the bailee when it holds the customer's monetary deposits or valuables in safety deposit boxes. The bank is responsible for safeguarding these assets while they remain under its custody. The customer, in this case, is the bailor, having entrusted the bank with their property.

This relationship is characterized by the bailee having possession but not ownership of the item. To highlight the significance of this, it is vital to understand that mistakes can occur regarding the responsibilities of each party. The bailee has a duty to take reasonable care of the goods and is typically liable for any damage resulting from negligence.

In contrast, the other choices represent different entities or roles that do not fit the definition of a bailee. The customer is the bailor, the insurance company typically provides coverage but doesn't hold the physical property, and the creditor usually has a claim on debts rather than possession of