Chapter 48: Personal Property and Bailments

When a person rightfully possesses personal property that belongs to someone else without the owner giving up title, it is called

bailment Explanation: A bailment is created when a person or business has rightful possession of the personal property belonging to someone else. The owner does not give up title, and usually the bailment is for a particular reason and for a limited time period.

The duties of a bailee include:

return of property on time and in good condition Explanation: A bailee must return the bailor's property on the agreed-upon date. He must also return the property in good condition and may be liable for harm to the property if the bailee failed to use adequate care and the property was damaged.

The rights of a bailor include:

return of the property in good condition Explanation: A bailor is entitled to the return of his property on the agreed-upon date. He is also entitled to receive the property in good condition and to recover damages for harm to the property if the bailee failed to use adequate care and the property was damaged.

Which of the following are requirements for a valid gift?

The gift must be delivered. The giver must intend to make a gift. The donee (one receiving the gift) must accept the gift. Explanation: Intention is a requirement of a valid gift. The gift must not have been made under duress and the giver must understand and intend to make a gift.

Which statement is true about bailments?

To create a bailment, the bailee must assume physical control of an item with intent to possess.

The attribute that distinguishes personal property from real property is

ability to be moved

A person in her last days with a terminal illness tells her friend that he can have her car when she dies. This type of gift is called a

gift causa mortis

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

mislaid

Real property is distinguished from personal property by its:

movability Explanation: Personal property is moveable, but real property is not. Real property consists of land and anything attached to it or permanently installed on it, including buildings, trees, driveways, sidewalks, and fences. Personal property might be large and difficult to move, but ultimately movability is the distinction between real and personal property.

Title to personal property may be transferred through

sale, gift, possession, or production