Chapter 33:Personal Property and Bailments

OWNERSHIP

a "bundle of legal rights" recognized and enforced by society. For example, ownership of a building includes the exclusive right to use, enjoy, sell, mortgage, or rent the building.

How is a bailment created?

by an express or implied contract.

Bailees may try to limit or relieve themselves of liability for the bailed property.

common examples include the signs near checkrooms, " Not responsible for loss or damage to checked property" and DISCLAIMERS on claim checks, "goods left at owner's risk".

TANGIBLE PROPERTY

has a physical existence; land, building, and furniture as examples.

LOST PROPERTY (PERSONAL)

if the owner did not intend to part with possession of the property. She has the right to have it return to her if she discovers where it is.

PERSONAL PROPERTY

includes all other objects and rights that can be owned. it can be attached to the earth and become real property.For example, marble in the ground is real property. When the quarried, it becomes personal property, but if is used in constructing a building, it becomes real property again.

GIFTS INTER VIVOS

is a gift between two living persons

Rights to compensation if it is for storage or repair of property?

the bailee is entitles to the contract price for the storage or repair services. If no price is agreed on, the bailee gets the reasonable value of the services provided.

Bailee's Duty of Care

the bailee is reasonable for using "reasonable care" to protect the property during the time he has possession of it. If the bailee does not exercise reasonable care and the property is lost or damaged, the bailee is liable for negligence. Then having to reimburse the bailor for the amount of loss or damage.If the property is lost or damages without the fault or negligence of the bailee, the bailee is not liable to the bailor

Rights to compensation if it is rental of property?

the bailee must pay the agreed-on rental rate.

Gifts given in contemplation of marriage, such as engagement rings, have given rise to much litigation. Generally, gifts of this kinds were considered?

to have been made on an implied condition that they are to be returned if the donee breaks the engagement without legal justification or if it is broken by mutual consent.

CONDITIONAL GIFTS

The donee comply with certain restriction or perform certain actions. it is not a complete gift, and it may be revoked by the donor before the donee complies with the conditions.However, if the donee has partially complied with the conditions, the donor cannot withdraw the gift without giving the donee an opportunity to comply fully.

If property is mistakenly imported in good faith by someone who believes that he is its owner, what can happen?

Usually the person who improved the property in good faith is entitle to recover the cost of the improvement made to it. Alternatively, the improver can keep the property and pay the original owner the value of the property as of the time that he obtained it

rights to compensation

whether a bailee is paid for keeping property or must pay for the right to use it depends on the bailment contracts or the understanding of the parties. If the bailment is a favor, then the bailee is not entitled to compensation even though the bailment is for the benefit of the bailor.

What are the two major examples of unowned property that can be acquired by possession are?

wildfire and abandoned property

Ownership of a patent means

you have the rights to sell it, to license other to use it, or to produce the patented article personally.

What are several factors or rights the original owner has to recover the property after paying for the improvements?

1. What is the relative increase in value? 2. has the form of identity of the property been changed? 3. can the improvements be separated from the original property?

The common carrier can avoid responsibility only if it can show that the loss or damage were caused by

1. an act of God 2. an act of a public enemy 3 an act or order of the government 4. an act fo the person who shipped the goods 5. the nature of the goods themselves

a hotelkeepers is not liable for loss of a damage to property if he can show that...

1. an act of God 2. an act of a public enemy 3. an act of government authority 4. the fault of a member of the guest's party 5. the natural of the goods.

Types of Bailments

1. bailment for the sole benefit of the bailor. 2. bailments for the sole benefit of the bailee. 3. bailment for mutual benefit.

What are the 2 kinds of gift:

1. gifts inter vivios 2.gifts causa mortis

What are the essential elements for bailment

1. the bailor must own or have the right to possess the item of property. 2. the bailor must deliver exclusive possession and control of the property, but not title, to the bailee. 3. the bailee must knowingly accept the property with the understanding that he owes a duty to return the property as directed by the bailor.

What are the 3 elements to consider a gift valid?

1. the donor must INTEND to make a gift. 2. the donor must make DELIVERY of the gift. 3. the donee must ACCEPT the gift.

When is a gift causa mortis not effective?

1. the donor recovers from the peril of sickness under fear of which the gift was made. 2. the donor revokes or withdraws the gift before he dies. 3. the donee dies before the donor. If one of these events takes place, the gift goes back to the donor.

Duties of the Bailee

1. to take reasonable care of the property that has been entrusted to him 2. to retune the property at the termination of the bailment.

What are issues presented when abandoned personal property is found on property owned by another person.

1. when property is embedded in the soil, it belongs to the owner of the soil. 2. when the owner of the land where the property is found (whether on or embedded in the soil) has constructive possession of the property so that the property is not "lost" or abandoned, it belongs to the owner of the land.

ACCESSION

A title to personal property can be obtained by increasing the value of the property by adding material and/or labor.

Do Bailee's have liens on property?

In many instances, the bailee will have a lien on the bailed property for the reasonable value of the services.

GIFTS CAUSA MORTIS

Is a gift made in contemplation of death. This is a conditional gift.

What are the two most important classes of property

Real Property and Personal Property

CONFUSION

Title to personal property Is the intermixing of goods belonging to different owners in such a way that the goods cannot later be separated.

FIXTURE

When personal property is attached to, or used in connection with, real property in such a way as to be treated as part of the real property.

Bailor's Liability for Defects in the Bailed Property

When personal property is rented or laced , the bailor makes an "implied warranty" that there are no hidden defects in the property that make it unsafe for use.

ESTRAY STATUE

allows finders of property to clear their title to the property after taking steps to see whether the true owner can be located. The statue generally provide that the person must give public notice of the fact that the property has been found perhaps by putting an ad in a local newspaper.

What is the common carrier responsible for

any loss or damage to goods entrusted to it.

HOTELKEEPERS

are engaged in the business of offering lodging and/or food to transient persons. They hold themselves out to serve the public and are obligated to do so. They are kept to a higher standard of care than the ordinary bailee.

Bailees who are COMMON CARRIERS

are held to a higher level of responsibility than bailees who are private carriers. they are persona who are licensed by government agencies to Carry the property of anyone who requests the services. Rates and terms under which a common carrier will carry property are normally subject to the approval of these government agencies.

Bailee's Duty to Return the Property

bailment is the duty of the bailee to return the property at the termination of the bailment. The bailee must return the goos in an undamaged condition to the bailor or to someone designated by the bailor.

What happens to the finder of abandon property and take possession of it with the intention of claiming the property?

becomes the owner of the property. this means he acquires better rights to the property than anyone else in the world, including the original owner.

What is the most common way of obtaining ownership of property

by producing it or by purchasing it. A personal owns the property he makes unless the person has agreed to do the work for someone else. In that case, the employer is the owner o the product of the work.

PRIVATE CONTRACT

carriers are persona who carry goods only for persons selected by the carrier.

What is included in the product liability doctrines that apply a higher standard of legal responsibility applied to bailors who are commercial lessor of personal property

express and implied warranties of quality under either Article 2 or Article 2A of the UCC.

What is the traditional rule if an engagement was unjustifiably broker by the donor?

generally bars the donor from recovering gifts made in contemplation of marriage. However, increasing number of courts have dropped an inquiry into who's fault it is that the marriage is not going forward.

POSSESSION

goods and mercy giving custody of goods.

What kind of problems arise if materials are added or work is done on personal property without the consent of the owner.

if the property is stolen from one person and improved by the their, the original owner can get it back and does not have to reimburse the thief for the work or materials in improving it

Safe-Deposit Boxes

if you rent one at a local bank and place some property in the box, the box and the property are in manual possession of the bank. However it takes both your key and the key held by the bank to open the box and in most cases the bank foes not know the nature, amount, or value of the goods in your box.

bailment for benefit of bailee

in which the owners of the goods allows someone else to use them free of charge.

What happens when the Bailee returns damaged goods or lost

is a rebuttable presumption of negligence on the part of the bailee. To overcome the presumption, the bailee has the burden of showing that the accident, damage, or loss resulted from some cause consistent with the exercise of the relevant level of due care on his part.

GIFT

is a voluntary transfer of property to the "donee", for which the donee gets no consideration in return.

bailment for benefit of bailor

is one in which the bailee renders some service but does not receive a benefit in return.

BAILMENT

is the delivery of personal property by one person (the bailor) to another person (the bailee) who accepts it and is under an express or implied agreement to return it to the bailor or to someone designated by the bailor.

REAL PROPERTY

is the earth's crust and all things firmly attached to it. It can also be turned into personal property if it is detached from the earth.

mutual benefit bailments

it is mutual benefit. On some occasions, the benefit to the bailee is less tangible.

If the bailee attempts to be relieved of liability for intentional wrongful acts is it again public policy and will it be enforced.

it it will not be enforced. A bailee's ability to be relieved for negligence is limited. The courts look to see whether the disclaimer or limitation of liability was "communicated" to the bailor.

PROPERTY

it may refer to an object such as a building, or it may refer to legal rights connected with an object, such as are found in the lease of a building, giving the tenants the right to occupy and use the building.

Is a hotelkeeper a bailee?

no they are not, in the strict sense of the word. They are treated as the virtual insurer of the guest's property.

Will or Inheritance

ownership of personal property can also be transferred on the death of the former owner. The property may pass under the terms of a will if the will validly executed. If there is no valid will, the property is transferred to the heirs of the owner according to state laws.

Today, one can still acquire ownership of personal property by?

possessing it if the property is unowned.

Why is it important to know the distinction between tangible and intangible property?

primarily for tax and estate-planning purposes. Generally, tangible property is subject to tax in the state in which it is located, whereas intangible property is usually taxable in the state where its owner lives.

PRIVATE PROPERTY

property owned by an individual, a group of individuals, a corporation or some other business organization.

INTANGIBLE PROPERTY

property that has no physical existence. Patent rights, easements, and bonds are examples.

ABANDONED PROPERTY (Personal)

property that the owner intentionally placed the property out of his possession with the intent to relinquish ownership of it.

MISLAID PROPERTY

property the owner placed the property somewhere and accidentally left it there, not intending to relinquish ownership of the property.

UNIFORM GIFTS TO MINORS ACT

provides a fairly simple and flexible method for making gifts of money and securities to minors. Under it, an adult can make a gift of money to a minor by depositing the money with a broker or a bank in an account in the donor's name, or with another adult of a bank with trust powers, as custodian for the minor under this Act.

Most states have passed laws that limit the hotelkeepers liability to

require the hotel owner to post a notice advising guest that any valuables should be checked into the hotel vault. Limiting the liability the hotelkeeper for valuables that are not so checked.

What if the bailment is mutual benefit bailment, then the bailor has a larger obligation.

the bailor must use reasonable care in inspecting the property and seeing that it is safe for the purpose for which it is rented.

Involuntary bailments OR Constructive Bailee

the duties are not well defined. the bailee does not have the right to destroy the property or to use it. If the true owner shows up, the property must be return to the owner.

What happens when the finder knows who the owner of the lost property is and refuses to return it?

the finder is guilty of conversation and must pay the owner the fair value of the property.

What are the consequences of property being classified as mislaid

the finer acquires no rights to the property. Rather, the person in possession of the real property on which the personal property was mislaid has the right to hold the property for the true owner. The rationale for this rule is that it increase the chances that the property will be returned to its real owner.

DONEE

the person who gives the gift

PUBLIC PROPERTY

the property is owned by the government or a government unit.

what happens when the finder of the lost property sells the property that he has found?

the purchaser is passed those rights that he has, he cannot pass any better title to the property than he himself has. Thus, the true owner could recover the property from the purchaser.

What happens is someone else finds your lost property?

they do not acquire ownership of it, but he acquires better rights to the lost property than anyone other than the true owner. The finder is required to return it to the owner.

some courts have also imposed STRICT LIABILITY on lessor/bailors of goods that turn out to be more dangerous than the lessee.bailee would have expected

this liability is imposed regardless of whether the lessor was negligent or at fault.

All states have statues of limitation that require the true owner to do what of the property?

to claim it or bring a legal action to recover possession of it within a certain number of years.

Why are the common bailments important

to determining the liability of the bailee for the loss of or damages to the property. However, some courts no longer rely on these distinctions for this purpose.

what can the word Property also refer to?

to legal rights that have economic value but are not connected with an object. A patent is an example of this kind of property.

What is a critical requirement in the creation of a bailment

whether the person to whom the property was delivered "intended to assume possession and control over the property".

If the bailor liable for injuries suffered by the bailee because of defects that the bailor either knew about or should have discovered by reasonable inspection?

yes he is liable.

are both private contracts and common carriers bailees?

yes, however the law makes the common carriers ABSOLUTE INSURER of the goods it carriers.