Bailment

Bailment is the transfer of possession of goods, without transfer of ownership, on terms that the goods be returned or dealt with as directed. A sea carrier is a bailee of the cargo for reward and owes the bailee’s common-law duty to take reasonable care of the goods. The duty reverses the burden of proof: once the cargo owner shows delivery in good order and out-turn in damaged condition, the carrier must prove the loss occurred without its negligence or fell within an excepted peril. Hague-Visby exceptions in Article IV qualify the bailee duty but do not displace the bailment analysis, which still governs where no contract of carriage covers the loss.