Chapter 48

What are the 3 types 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

What 3 elements are required for a gift to be effective?

1. Donative intent on the part of the donor 2. Delivery 3. Acceptance by the donee

What are the 3 duties that bailees have?

1. Duty of care 2. Duty to Return Bailed Property 3. To repair lost or damaged property

What are the 2 duties of bailors?

1. Duty to reveal defects 2. Warranty liability for defective goods

For delivery to occur the bailee must be given what 2 things over the property?

1. Exclusive possession 2. Control

What are the 2 rules of the duty to reveal 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 discovered with reasonable diligence and property inspection 2. In a bailment for the sole benefit of the bailee, the bailor must notify the bailee of any known defects

What are the 2 classifications of bailments?

1. Ordinary 2. Special

For a transfer of property to be a bailment, what 3 elements must be present?

1. Personal Property 2. Delivery of possession 3. Agreement that the property will be returned to the bailor or otherwise disposed of according to its owner's directions

What are the 5 ways a person can acquire ownership of personal property?

1. Possession 2. Production 3. Gift 4. Accession 5. Confusion

What are the 2 ways that hotel operators can avoid strict liability for loss of guests' cash and valuables?

1. Providing a safe in which to keep guests' valuables 2. Notifying guests that a safe is available

What 2 things will a court look at to determine donative intent?

1. Relationship between the parties 2. The size of the gift in relation to the donor's other assets

What are the 2 reasons why a distinction between real and personal property are important?

1. Taxation 2. Acquisition

What 2 things must be true if, in ordinary bailments, for bailees to have the right to limit their liability?

1. The limitations are called to the attention of the bailor 2. The limitations are not against public policy

What are the 2 things that determine whether an item is a fixture or not?

1. The property attached cannot be removed without causing substantial damage to the remaining realty 2. The property attached is so adapted to the rest of the realty as to become a part of it

Real property transfers generally involve what 2 things

1. Written sales contract 2. A deed recorded with the state

What type of bailment is a bailment for mutual benefit?

A contractual bailment and is often referred to as a bailment for hire or a commercial bailment

What type of bailment is a bailment for the sole benefit of the bailor?

A gratuitous bailment - meaning that it involves no consideration - it is for the convenience and benefit of the bailor

Property with which the owner has voluntarily parted, with no intention of recovering it

Abandoned Property

Occurs when an individual adds value to personal property by either labor or materials; can acquire ownership through this

Accession

One to whom goods are entrusted by a bailor

Bailee

A possessory lien, or claim, that a bailee entitled to compensation can place on the bailed property to ensure that he or she will be paid for the services provided

Bailee's lien

A situation in which the personal property of one person is entrusted to another, who is obligated to return the bailed property to the bailor or dispose of it as directed

Bailment

One who entrusts goods to a bailee

Bailor

Any form of personal property

Chattel

Publicly licensed to provide transportation services to the general public

Common Carriers

The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified

Confusion

An act equivalent to the actual, physical delivery of property that cannot be physically delivered because of difficulty or impossibility

Constructive Delivery

Transfer of possession of the property to the bailee

Delivery of possession

What can a warehouse company issue that no one else can?

Documents of title/Warehouse Receipts - Subject to regulation under article 7 of the UCC

Perfect control in the right of ownership of property

Dominion

A statute defining finders' rights in property when the true owners are unknown

Estray Statutes

A thing that was once personal property but that has become attached to real property in such a way that it takes on the characteristics of real property and becomes part of that real property

Fixture

Any voluntary transfer of property made without consideration, past or present

Gift

Gift made in contemplation of imminent death

Gift Causa Mortis

A gift made during the donor's lifetime

Gift Inter Vivos

When does the bailee have the right to be compensated?

In any bailment except one that is gratuitous

How can a warehouse limit its liability?

It can limit the dollar amount of liability, but it must give the bailor the option of paying a higher storage rate for an increase in the liability limit

What is different about the duty of care for a bailee in a special bailment?

It is extraordinary and the bailee's liability for loss or damage to the property is absolute

Property with which the owner has involuntarily parted and then cannot find or recover

Lost Property

Personal property can be transferred with a _________ ___ ______________

Minimum of formality

Property with which the owner has voluntarily parted and then cannot find or recover

Mislaid Property

Can common carriers contract away their liability for damaged goods?

No

Property that is movable; any property that is not real property

Personal Property

What can be the subject of a bailment?

Personal property only

The land and everything permanently attached to it including structures and anything permanently attached to the structures

Real Property

What level of care are common care providers held to?

Strict liability

What happens to goods if they are confused due to an intentional wrongful act?

The innocent party ordinarily acquires title to the whole

Who owns the property if confusion occurs as an honest mistake or the act of some third party?

The owners share ownership in the commingled goods in proportion to the amount each contributed

The personal property of a commercial tenant that has been installed or affixed to real property for a business purpose; when the lease ends, the tenant can remove this, but has to fix any damages

Trade Fixture

If an improvement is made due to an honest mistake of judgment what must the owner do?

Usually the owner must pay for the improvement

Providing storage of property for compensation

Warehousing

When is someone guilty of the tort of conversion?

When a finder of lost property knows the true owner and fails to return the property to that person

When is the bailee allowed to use the bailed property?

When express provision is given

When are fixtures not included with the sale of land?

When specifically stated in the sales contract

When does a gift causa mortis become effective?

When the donor dies from the contemplated illness or other peril

When do items go from being real property to personal property?

When they are removed/severed from the land

When someone finds abandoned property, is their title good?

Yes, against everyone including the true owner