What the Law Is

So, what does all this mean for the law governing bailments? For the most part, the applicable law is still the common law, but there are some statutes-like Alberta's Innkeepers Act -that modify common-law principles. And, of course, people setting up bailments can always create their own contracts.

Liens

Bailees who are repairing, storing, or moving the goods entrusted to them have the right to expect payment for their work. But what happens if they've done the repairs and the bailor won't pay for them? In this case, the law may give the bailee what's called a lien on the goods until payment is made. A lien is simply a right to retain possession of another's goods until money owning is paid. This means, for example, that if Speedy Moving and Storage has moved a customer's furniture, they may be able to keep the goods in storage until the customer pays for the service.

The statute law governing liens can be complex; the important thing is to be aware that they exist. If you ever find yourself in a situation involving liens, either as bailor or bailee, you should consult a lawyer to learn what your legal rights are.

Statutes Affecting Bailments

As mentioned previously, sometimes statutes affect the common-law rules of bailments. A good example is Alberta's Innkeepers Act . This statute, like similar ones in other provinces and territories, limits the legal responsibilities innkeepers-people who operate hotels, motels, and so on-owe their customers. If a copy of the Act is posted where customers can see it, the innkeeper will be liable for loss or damage only if:

1. the goods involved were lost or damaged by the innkeeper or an employee

2. the goods were given directly to the innkeeper or an employee for safekeeping

    

Speaking of posting signs, sometimes you see a notice posted saying something like "the company will not be responsible for lost or stolen property". I have seen that in parking lots, for instance

Good point. That brings us to our last topic in discussing bailments - making specific arrangements that modify the usual rules.