Carl requested Simple Delivery Service to pick up a refrigerator at his home and deliver it to his cottage, some 160 kilometres away. Simple Delivery picked up the refrigerator, but through a mix up in delivery bills, lost the refrigerator. In this case, the pickup of the refrigerator by Simple Delivery Service created a bailment.

A bailment is created when personal property is delivered into the hands of another, with the understanding that the property will be returned or accounted for upon request. When Simple Delivery Service took possession of the refrigerator with the agreement to deliver it to a specific location, a bailment was established, regardless of the subsequent loss of the item.