Bailment agreement

Agreement under which the bailee undertakes to safely keep a chattel entrusted to him by the bailor. Bailment agreements are concluded, e.g. in connection with the conclusion of shareholders’ agreements and other collaboration agreements in order to entrust shares to an independent bailee. In the process, the bailee is instructed to surrender the shares only when the parties jointly request that he or she do so. The bailment agreement serves here to secure reciprocal claims of the parties to the shareholders’ agreement (e.g. preemptive rights), since they no longer have independent control over their shares. The bailment agreement is dealt with in Arts. 472 et seq. of the Code of Obligations (Obligationenrecht, OR).