Chapter 21: Personal Property and Bailments

A. Personal Property 3. Gifts A) Inter Vivos Gifts 2. Delivery

-Delivery can be actual (symbolic) or constructive. -Failure to meet the delivery requirement will result in an ineffective gift. -A completed gift is made when the decedent mails a gift to the donee prior his death, even though the gift is received after the decedent died.

A. Personal Property 3. Gifts B) Gift Causa Mortis

-Made with contemplation of imminent death. If Donor survives, gift is revocable. -Conditional gift and donor is entitled to take the property back if: -the donor does not die -the donor revokes the gift before dying -the donee dies before the donor

A. Personal Property The major forms of co-tenancy are:

-Tenancy in common. -Joint tenancy. -Tenancy by entirety. -Community property.

A. Personal Property 3. Gifts A) Inter Vivos Gifts 1. Intent

-The intent to make a gift requires an intent to transfer title at that time. -A delivery of property without the intent to make a gift does not transfer title.

A. Personal Property 3. Gifts D) Conditional Gifts.

A gift may be made subject to a condition. a condition precedent must be satisfied before any gift or transfer takes place. -Engagement ring is considered a gift if given on holidays, otherwise it is not.

A. Personal Property Held in severalty

All rights in a property can be held by one individual

A. Personal Property 3. Gifts A) Inter Vivos Gifts

An ordinary gift between two living persons is called.

B. Bailments 12. Classification of Ordinary Bailments. iii) For mutual benefit

As in a commercial bailment the bailee must only exercise reasonable care, and is liable for ordinary negligence.

B. Bailments 16. Liability for Defects in Bailed Property.

Bailor has duty to inform of defects in bailed property, but also make reasonable investigation for defects. Bailor is responsible for harm from defects in bailments for mutual benefit.

B. Bailments 10. Elements of a Bailout B) Delivery and Acceptance.

Bailor's knowledge required for responsibility.

B. Bailments 15. Breach of Duty of Care:

Burden of Proof. When the bailor sues the bailee for damages to the bailed property, the bailor has the burden of proving that the bailee was at fault and that such fault was the proximate cause of loss.

B. Bailments 10. Elements of a Bailout A) Agreement.

Can be express or implied.

A. Personal Property 4. Finding of Lost Property. A) Finding in Public Place

Finder must give to hotel or manager.

A. Personal Property 3. Gifts A) Inter Vivos Gifts 3. Donor's Death

If Donor dies before gift is complete, the gift fails.

B. Bailments 12. Classification of Ordinary Bailments.

In some states, the standard of care required of a bailee is related to the class of bailment: -sole benefit of the bailor -sole benefit of the bailee -for mutual benefit

A. Personal Property 5. Occupation of Personal Property C) Conversion

Limited to property that can be lost and found.

A. Personal Property 8. Community Property

Only property acquired during marriage. Some states, passes to surviving spouse; other states passes to heirs.

B. Bailments 17. Contract Modification of Liability.

Ordinary bailment may limit liability (except for willful misconduct) by contract.

A. Personal Property 5. Occupation of Personal Property B) Abandoned Personal Property

Owner does not intend to reclaim possession. Finder acquires title to property.

A. Personal Property 7. Multiple Ownership of Personal Property. C) Tenancy by the Entirety.

Ownership by both a husband and wife; like joint tenancy, but only between spouses. In many states, divorce converts a tenancy by entirety into a tenancy in common.

A. Personal Property 7. Multiple Ownership of Personal Property. B) Joint Tenancy.

Ownership by two or more persons; has right of survivorship, so when one joint tenant dies, the other(s) take the ownership share of the deceased. When ownership in a joint tenancy is transferred, a new joint tenancy is formed.

A. Personal Property 7. Multiple Ownership of Personal Property. A) Tenancy in Common.

Ownership by two or more persons; interest may be transferred or inherited (or bequeathed).

A. Personal Property Held in Co-tenancy

Ownership rights may be held concurrently by two or more individuals

A. Personal Property 3. Gifts E) Anatomical Gifts.

Person may make gifts of parts of their bodies.

A. Personal Property 5. Occupation of Personal Property A) Wild Animals

Person who acquires dominion over wild animal becomes its owner. Wild animals are not owned by any individual.

A. Personal Property 4. Finding of Lost Property.

Personal property is lost when owner does not know the location but intends to retain title. The finder does not acquire title but possession. Absent a contract or statute, finder is not entitled to reward.

A. Personal Property 1. Personal Property in Context

Personal property is tangible and movable and includes rights in things that are intangible. Real property is non-movable, such as land and anything permanently attached to it. Property rights include the right to possess, use, enjoy or dispose of the property.

A. Personal Property 2. Title to Personal Property

Property may be acquired: -By gift, -By purchase, -By finding lost property, -By occupation, -By escheat.

A. Personal Property 6. Escheat

Property transfers to state after unclaimed for statutory period of time.

A. Personal Property 4. Finding of Lost Property. B) Statutory Changes

Some states have adopted statues permitting the finder to sell the property or keep it if the owner does not appear within a stated period of time.

B. Bailments 9. Definition

Tangible personal property is delivered by the owner (bailor) to another person (the bailee) under an agreement that the identical property will be returned or delivered in accordance with the agreement.

B. Bailments 11. Nature of the Parties' Interest. B) Bailee's Interest.

The bailee has possession of the property only.

B. Bailments 12. Classification of Ordinary Bailments. ii) Sole benefit of the bailee

The bailee is required to exercise great care and is liable for the slightest negligence.

B. Bailments 12. Classification of Ordinary Bailments. i) Sole benefit of the bailor

The bailee is required to exercise only slight care and is liable for gross negligence only.

B. Bailments 14. Duties and Rights of Bailee.

The bailee is under a duty to care for the bailed property, and the duty of care owed differs according to classification, based in terms of "benefit." A bailment may be for the sole benefit of the bailor.

B. Bailments 11. Nature of the Parties' Interest. A) Bailor's Interest.

The bailor is usually the owner, but ownership by the bailor is not required. It is sufficient that the balior have physical possession.

A. Personal Property 3. Gifts C) Gifts and Transfers to Minors.

Uniform acts provide for transferring property to a custodian to hold the benefit of a minor. Under the uniform acts, custodianships terminate and the property is distributed when the minor reaches age 21.

B. Bailments 13. Renting of Space Distinguished.

When a person rents space in a locker or building under an agreement that gives the renter the exclusive right to use that space, the placing of goods by by the renter in that space does not create bailment, for it does not constitute a delivery of goods into the possession of the owner of the space. -Renting a safe deposit or space in a bank does create bailment.