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Simple English definitions for legal terms
warehouse receipt
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A quick definition of warehouse receipt:
A warehouse receipt is a document that proves ownership of goods that are stored with someone else, usually for a fee. It is like a special ticket that shows you have the right to claim your goods when you need them. This document can also be used to get a loan, where the goods are used as security. This is called a bailment, which means that the goods are in the possession of someone else, but you still own them.
A more thorough explanation:
A warehouse receipt is a document that proves ownership of goods that are stored with someone else, usually for a fee. It is considered a document of title and can be used as collateral for financing.
Bailment is a legal relationship between two parties where one person (the bailor) delivers personal property to another person (the bailee) for a specific purpose under an express or implied contract. Unlike a sale or gift, bailment involves a change in possession but not in title.
- A person leaves their car with a parking attendant for a fee. This is a bailment for hire.
- A person leaves their car with a parking attendant who will also wash the car while it is parked. This is a bailment for mutual benefit.
- A person leaves their car with a friend for free. This is a gratuitous bailment.
These examples illustrate the different types of bailment based on whether the bailee is compensated, and if so, whether the bailor also receives an additional benefit. In each case, the bailee has a duty to keep the property safe and return it to the bailor.