Paralegal Advanced Competency Exam (PACE) Practice Exam

In legal terms, who is the bailor?

1. The person receiving property through bailment

2. The individual controlling the bankruptcy process

3. The person transferring possession of property

4. The beneficiary of an estate

The correct answer is: The person transferring possession of property

The bailor is defined as the person who transfers possession of property to another party under a bailment agreement. In a bailment situation, the bailor retains ownership of the property while the bailee (the party receiving the property) is granted temporary possession. This temporary possession comes with certain responsibilities for the bailee, such as taking care of the property and returning it in its original or agreed-upon condition after the bailment period ends. This concept is fundamental in property law, as it establishes the rights and duties of both parties involved in the bailment. The other choices do not accurately define the bailor. For instance, the recipient of property in a bailment is the bailee, not the bailor. The individual controlling the bankruptcy process is referred to as a bankruptcy trustee and does not relate to bailment. Lastly, the beneficiary of an estate pertains to probate law rather than bailment, further clarifying the specific legal term associated with the bailor.