Bailments

Elements of involuntary bailment

- An involuntary bailment exists where personal property has been left by the true owner, without negligence, in the possession of another. - The law imposes an involuntary bailment, obliging the bailee to hold property for the return to the true owner.

Duty of Bailor for Mutual Benefit

- Bailors for mutual benefit are deemed to have warranted the fitness of the bailed property for the intended use. - Such bailors must reasonably inspect the property and inform the bailee of defects within the bailor's knowledge or defects of which he should have known.

Acceptance

- The bailee must accept the obligation to act as a bailee. A bailee who declines to act as such has no legal responsibility over the property. - A bailee is not deemed to have accepted a bailment over property of which he or she is unaware, such as items locked inside a box or car trunk, unless the bailee had actual or implied notice of the contents.

Limitation of Bailee's Liability

1. A bailee can limit the bailee's negligence liability in the bailement contract with the agreement of the bailor. 2. Courts are reluctant to allow limitation of a bailee's gross negligence or willful misconduct.

Duty of Gratuitous Bailor

1. A gratuitous bailor need only warn the bailee of latent defects within the bailor's knowledge that are not obvious or readily discernible. 2. A gratuitous bailor has no duty to inspect the property to ensure its condition, unless it is inherently dangerous. 3. Bailors of vehicles loaned as a convenience to the purchaser of a vehicle who has not yet had delivery of the purchased vehicle may have to perform an inspection.

Express or implied Contract over Disposition of Property

1. A voluntary bailment requires that the parties enter into a contract that instructs the bailee on the disposition of the property. 2. The contract can be either expressed or implied.

Delivery with intent to control

1. A voluntary bailment requires that the property be delivered and held for a specific purpose. Creation of a bailment requires delivery of custody and control of the item. 2. Merely having custody without control is insufficient to create a bailment relationship. Whether a person has mere custody or has possession sufficient to create a bailment depends on the intent of the person to relinquish power over the property.

Elements of Voluntary Bailment

1. Delivery with intent to control 2. Acceptance 3. Express orImplied Contract over Disposition of Property

Involuntary Bailment

A bailment that is implied by law.

Duty of Bailor

A bailor has a general duty to notify the bailee of the condition of the bailed goods to ensure the bailee has the option to decline the bailment if the goods would be harmful to himself or his property. The extent of his duty to notify depends on whether the bailor is a gratuitous bailor or a bailor for mutual beefit.

Return of Property by bailees

Beilees must return bailed property. Bailees of a voluntary bailment are strictly liable for failure to return the property. Involuntary bailees are liable only for negligence.

Standard of care for mutual benefit baliee

Must exercise ordinary and reaasonable care over the property to protect it from loss, damage, and destruction.

Duty for involuntary bailees

Need only exercise slight care and are liable only for gross negligence

If bailment was created for the bailee's benefit then....

The bailee owes a duty of great or extraordinary care to ensure the protection of the bailed property.

If created ofthe bailor's benefit...

The bailee owes a duty of only slight care and is liable for gross negligence.

Bailment

The delivery of goods or personal property, whether tangible or intangible, to the rightful possession of another (the bailee) without loss of title by the true owner (the bailor) and usually for a specific purpose.

Modern trend duty of a bailee

To hold all bailees to the same standard, generally recognized as reasonable or ordinary care under the circumstances.

Incidental Expenses

Unless a bailment contract provides ot the contrary, any ordinary, incidental expenses that arise from use of the bailes property must be paid by the bailee.

Voluntary Bailment

Voluntary Bailment exists where the parties agree to the bailment. They can be either for mutual benefit (for money) or gratuitous (no compensation)

Duty of a gratuitous bailee depends on...

whetehr the bailment was created for the sole benefit of the bailee or the bailor.