The distinction between Trust & Bailment

A bailment is to be distinguished from a trust in that it only confers possessory title to property, rather than proprietary right, upon a bailee. A bailment will not, in itself, create a trust. If the property is expressly conferred to a bailee for the benefit of third parties, then a trust in favour of the third parties may arise. However, the mere transfer of possession is, in itself sufficient. A bailment confers possession of property to a third party for certained  defined purposes.  Common Law will enforce a breach of the terms of the bailment specifically create a trust, no equitable relief will be available.

The distinction between trust & bailment is well evidenced in the dealings that a trustee & bailee may have with third parties. A trustee may pass the property on to an innocent third party purchaser. A bailee cannot pass any proprietary title on becouse a bailee only holds a possessary title. Furthermore, a bailment  can only arise with respect to personal property, whereas a trust can be created over real or personal property.