Naked Bailment Law and Legal Definition
Naked bailment refers to a bailment for which a bailee receives no compensation, as when one borrows something from another. A naked bailment is liable for the loss of the property only if the loss is caused by the bailee’s gross negligence. It is also known as gratuitous bailment. A deposit, in the technical legal sense, is a naked bailment of goods to be kept for the depositor without reward and to be returned when he shall require it. In Bates v. Capital State Bank, 18 Idaho 429, 436 (Idaho 1910), it was held that a naked bailment of goods is to be kept for the bailor without reward and to be returned upon demand.
