Chapter 48: Personal Property and Bailments

confusion

(mixing together) of goods to such an extent that one person's personal property cannot be distinguished from another's. (usually happens with similar looking objects)

three elements of ordinary bailments

1. Bailment for the sole benefit of the bailor. 2. Bailment for the sole benefit of the bailee. 3. Bailment for the mutual benefit of the bailee and the bailor

three elements of a valid gift

1. Donative intent on the part of the donor (the one giving the gift). 2. Delivery. 3. Acceptance by the donee (the one receiving the gift).

rules in a bailors duty to report defects

1. In a mutual-benefit bailment, the bailor must notify the bailee of all known defects and any hidden defects that the bailor knows of or could have discov- ered with reasonable diligence and proper inspection. 2. In a bailment for the sole benefit of the bailee, the bailor must notify the bailee of any known defects

three elements of a bailment

1. Personal property. 2. Delivery of possession (without title). 3. Agreement that the property will be returned to the bailor or otherwise disposed of according to its owner's directions

duties of a bailee

1. To take appropriate care of the property. 2. To surrender the property to the bailor or dispose of it in accordance with the bailor's instructions at the end of the bailment.

hotel operators can avoid strict liability for loss of guests' cash and valuables by:

1. providing a safe 2. notifying guests that a safe is availible

mislaid property

Property that has been voluntarily placed somewhere by the owner and then inadvertently forgotten

lost property

Property that is involuntarily left

fixture

When personal property is affixed to real property in a permanent way, as when tile is installed in a house,

concurrent ownership

When two or more persons own real or personal property together

example of bailment for the mutual benefit of bailor and bailee

a car lease

constructive delivery

a general term for all of those acts that the law holds to be equivalent to acts of real delivery.

gift inter vivos

a gift given during the donor's lifetime

gift causa mortis

a gift made in contemplation of imminent death

real property transfers generally involve ____________________

a written sales contract and a deed that is recorded with the state.

Property that has been discarded by the true owner, who has no intention of reclaiming title to it

abandoned property

When a person has given away a large portion of her or his assets, the court will _________________

analyze the donor's mental capacity and look for indications of fraud or duress

The bailment agreement expressly or impliedly pro- vides for the return of the bailed property to the bailor or to a third person, or for disposal of the property by the ______________

bailee

involuntart bailments

bailment exists despite the apparent lack of the requisite elements of control and knowledge.

even in a gratuitous bailment, the bailee has the right to _________________

be reimbursed for costs incurred and services rendered in keeping the bailed property (

example of bailment for the sole benefit of the bailee

borrowing someone's property

When a finder of lost property knows the true owner and fails to return the property to that person, the finder is guilty of the tort of ______________

conversion

bailment

created when personal property is temporarily delivered into the care of another without a transfer of title, such as when a person takes an item of clothing to the dry cleaners.

warehouse receipts

describes the bailed property and the terms of the bailment contract. It can be negotiable or nonnegotiable, depending on how it is written.

How property is taxed and what is required to transfer or acquire the property is determined by whether the prop- erty is classified as _______________

either real or personal property

estray statutes

encourage and facilitate the return of property to its true owner and reward the finder for honesty if the prop- erty remains unclaimed. T

If the bailor refuses to pay or cannot pay the bailor's lien, in most states the bailee is entitled to ______________

foreclose on the lien and sell the property to recover the amount owed.

Except in a ______________ bailment, a bailee has a right to be compensated as provided for in the bailment agreement. T

gratuitous

tangible property

has physcial substance

example of bailment for the sole benefit of the bailor

having someone look after your property

Elements to limit liability during a bailment

limitations are called to the attention of the bailor limitations are not against public policy

production

manually producing the property (songs, written stories)

Those who find lost or abandoned property can also acquire ownership rights through ______________

mere possession of the property

Like ordinary bailees, ware- house companies are liable for loss or damage to property resulting from __________________

negligence

If the bailed property has been lost or is returned damaged, a court will presume that the bailee was ___________

negligent

private carrier

not required to provide service to every person or company making a request.

accession

occurs when someone adds value to an item of personal property by the use of either labor or materials

wirtten contracts are not required for bailments under _________

one year

dominion

ownership rights

bailor

person giving the property

bailee

person receiving property

________________ is capable of being moved.

personal property

To enforce the right of compensation, the bailee has a right to place a _______________on the specific bailed prop- erty until she or he has been fully compensated.

possessory lien or bailor's lien

common carriers

publicly licensed to provide transportation services to the general public. They are legally bound to carry all passengers or freight as long as there is enough space, the fee is paid, and there are no reasonable grounds to refuse service.

most common way of possessing property

purchase or by will

intangible property

some sets of rights and interests that has no physical existence

What distinguishes a bailment from a sale or a gift?

that possession is transferred without passage of title or intent to transfer title.

A hallmark of the bailment agreement is that ____________

the bailee acquires the right to control and possess the property temporarily.

Property that is leased from a bailor must be fit for _______________

the intended purpose of the bailment.

real property (real estate)

the land and everything permanently attached to it, including structures and anything permanently attached to the structures.

Property

the legally protected rights and interests a person has in anything with an ascertainable value that is subject to ownership

Typically, the tax rate is based on ________________

the market value of the real property and the services provided by the city, state, and county in which the property is located.

A warehouse company can limit the dollar amount of its liability. Under the UCC, however, it must give the bailor _______________________________

the option of paying a higher storage rate for an increase in the liability limit.1

Someone who finds abandoned property acquires title to it, and that title is good against the whole world including ______________

the original owner

If an improvement is made wrongfully—without the permission of the owner, then _______________

the owner retains title to the property and normally does not have to pay for the improvement.

A finder of lost property can claim title to the property against the whole world, except _______________

the true owner

The bailee's obligation is excused, however, if the property was destroyed, lost, or stolen _____________

through no fault of the bailee

delivery of possession

transfer of possession of the property to the bailee.

gift

voluntary transfer of property ownership for which no consideration is given.