Which of the following best describes mutual benefit bailment?

Mutual benefit bailment occurs when both the bailor and the bailee derive advantages from the arrangement. In this context, the bailor, who owns the property, transfers possession to the bailee for a specific purpose, and in return, the bailee provides a service or use that benefits the bailor, such as maintenance, storage, or rental income. This mutuality is essential because it establishes the expectation that both parties have responsibilities: the bailor must disclose defects in the property, while the bailee is generally expected to care for the property and return it in good condition after the purpose has been fulfilled.

The other options do not align with the concept of mutual benefit. A description of property transfer with no benefit to either party fails to recognize the fundamental nature of bailment, where at least one party must benefit. If the bailor benefits while the bailee incurs costs, this implies an imbalance that does not capture the essence of mutuality. On the other hand, suggesting that the bailee benefits without obligations misrepresents the responsibilities expected from a bailee in a mutual benefit bailment scenario. Thus, the definition encompassing both parties receiving benefits correctly encapsulates the essence of mutual benefit bailment.