Warehousing In Canada Under Common Law And Civil Law

While warehousing is a significant part of the supply chain throughout Canada, a warehouser's rights and obligations vary according to whether its activities are governed by the common law and by provincial legislation in force in common law provinces, or by the civil law system in the province of Québec. A comparison of these legal frameworks should be of interest to warehousers and to other actors in the supply chain.

Bailment and Warehousing in Common Law Provinces

At common law, a bailment arises when a person (the bailor) delivers goods to another person (the bailee) with the understanding that the goods will be returned, in either their original or an agreed upon form, when the time or use for which they were bailed elapses or is performed.  Bailments are often based on the terms of an express or implied contract, but a contract is not required for a bailment to exist. The bailor has a cause of action (whether for breach of contract or for negligence) when