Bailment: Difference between revisions

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Can you have a [[bailment]] over [[cash]]? The [[Jolly Contrarian]] has heard it said — by persons of good repute — that one can, but he struggles with that idea. If I deliver you cash, even by way of [[surety]], it is in the nature of [[cash]] that you take title to it absolutely. Any third person to whom you give it takes title to it absolutely without need to enquire as to competing interests. If [[cash]] didn’t have this quality, it would be less valuable as ''[[cash]]''.
Can you have a [[bailment]] over [[cash]]? The [[Jolly Contrarian]] has heard it said — by persons of good repute — that one can, but he struggles with that idea. If I deliver you cash, even by way of [[surety]], it is in the nature of [[cash]] that you take title to it absolutely. Any third person to whom you give it takes title to it absolutely without need to enquire as to competing interests. If [[cash]] didn’t have this quality, it would be less valuable as ''[[cash]]''.


{{seealso}}
What of [[crypto asset]]s? An emerging question. The more they look like an asset, the more you can bail it. The more it looks like cash, the harder that would be. The importance of code in determining who has it — as to which, see {{br|Code: Version 2.0}} — makes it look, in practice, more like cash.
 
{{sa}}
*[[Pledge]]
*[[Pledge]]
*[[Charge]]
*[[Charge]]

Revision as of 15:02, 11 December 2019

The Jolly Contrarian’s Glossary
The snippy guide to financial services lingo.™


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A special type of security interest, most commonly articulated in the word of finance in the shape of a pledge. A bailee has possession of but no legal title to the chattel, but this operates as good practical security, because the bailee can demand the bailor pay its bill before giving the item back.

This is why your mechanic has that smug look when you roll up in the Disco for your MOT.

To be compared with a trust relationship, where the person holding the item has legal title to it, but not possession.

Cash and bitcoin

Can you have a bailment over cash? The Jolly Contrarian has heard it said — by persons of good repute — that one can, but he struggles with that idea. If I deliver you cash, even by way of surety, it is in the nature of cash that you take title to it absolutely. Any third person to whom you give it takes title to it absolutely without need to enquire as to competing interests. If cash didn’t have this quality, it would be less valuable as cash.

What of crypto assets? An emerging question. The more they look like an asset, the more you can bail it. The more it looks like cash, the harder that would be. The importance of code in determining who has it — as to which, see Code: Version 2.0 — makes it look, in practice, more like cash.

See also