Cash Bailment Agreement
The former common law made a bailee severely liable for the prosecution. The exception to this rule was involuntary surety (see below) where the bailee is maintained only with a level of due diligence. Note that the buyer or taker always releases the merchandise from the security interest if the recorded interest has not been registered on the day of the transaction or even the day before. This is akin to a “day and a half” rule in some current state legislation. Nor does this rule apply (without exception, among other things) when the purchaser or taker holds the vehicle as an inventory or if it is actually or constructively informed of a violation of the safety agreement. In most cases, physical control is fairly easily proven. A car delivered to a car park is obviously in the physical control of the garage. But in some cases, physical control is difficult to conceive. For example, you can rent a safe in a bank to store valuable securities, stock certificates, jewelry and others. The box is usually in the safe of the bank. To access, sign a register and insert your key after a banker has inserted the bank key.
You can then check, add or remove the contents of the field in the privacy of a small room that is maintained for this purpose in the safe. Since the bank cannot access the box without your key and does not know what is in the box, you could say that it has no physical control. Nevertheless, renting a safe is an alliance. In this regard, a New York court noted that it was difficult to know who was if the bank was not in possession of the tenant`s property. Certainly not [the tenant] because she could not have access to the property without the defendant`s consent and active participation. She could not enter her safe unless the accused first used her key and then allowed her to open the box with her own key; absolute control over what it had deposited in the safe. The safe was the business, and it was in his custody, and its contents were under the same conditions. Lockwood v. Manhattan Storage – Warehouse Co., 50 N.Y.S.
974 (N.Y. 1898). However, the statutes of some states provide that the relationship is not a shame, but that of a landlord and tenant, and many of these statutes limit the bank`s liability in the event of losses.