Chapter 48 – Personal Property and Bailments PDF

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Chapter 48 – Personal Property and Bailments

Property  Legally protected rights and interested in anything with an ascertainable value that is subject to ownership Personal Property vs Real Property  Real Property (Realty) – land and everything of value attached to it, growing on it, running through it, or found under it.  Personal Property (chattel or personalty) – moveable property ▪ Tangible personalty – has physical substance (ex. Television) ▪ Intangible personalty – value does not depend on physical existence Converting Realty to Personalty  Real property (other than land) can be detached from the land and converted to personal property Acquiring Ownership  Ways in which ownership of personal property can be acquired, including acquisition by possession, production, gift, accession, and confusion Possession  A person can become the owner of personal property merely by possessing Production  Writers, inventor, manufactures, and others who produce personal property may thereby acquire title to it Gift  Any voluntary transfer of property made without consideration  Gift requires ▪ Donative intent on the part of the donor (the one giving the gift) ▪ Must intend for the transfer to be a gift ▪ Delivery ▪ Gift must be delivered to the done ▪ Constructive delivery – symbolic delivery of property that cannot be physically delivered

▪ Dominion – power, ownership rights ▪ Acceptance by done (the one receiving the gift) Gifts Inter Vivos and Gifts Causa Mortis  Inter vivos gift - made during one’s lifetime and not in contemplation of imminent death  Causa mortis gift – made in contemplation of the donor’s death. ▪ The done must survive the donor in order to accept the gift ▪ If the donor does not die as expected, he may revoke the gift Accession  Expending labor or materials to add value to someone else’s property Confusion  Mixing together of goods belonging to two or more owners to such an extent that the separately owned goods cannot be identified Mislaid, Lost, or Abandoned Property  One method of acquiring ownership of property is to possess it. Different rules of ownership depend on whether the property was mislaid, lost, or abandoned  Mislaid property – the owner has voluntarily parted and then cannot find or recover ▪ Finder does not obtain title to the property but holds it in trust for the true owner  Lost property – the owner has involuntarily parted and then cannot find or recover. ▪ Finder can claim title to the property superior to that of anyone except the true owner ▪ Conversion – retaining property, without the true owner’s assent, despite knowing to whom it belongs ▪ Estray statute – permits a finder to become the owner of lost property when its true owner is unknown, and no one timely claims the property after the finder reports discovering it  Abandoned property – the owner has voluntarily parted with no intention of recovering it ▪ A finder can claim title that is superior to that of any other person including the true owner Bailments

 Bailment – 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  Bailor – one who entrusts goods to a bailee  Bailee – one to whom goods are entrusted by a bailor

Elements of a Bailment  Personal property  Delivery of possession (without title) ▪ Bailor must actually or constructively deliver the bailed property to the bailee  Agreement that the property will be returned to the bailor or otherwise disposed of according to its owner’s directions ▪ Expressed or implied Ordinary Bailments  Bailment for the bailor’s sole benefit ▪ A gratuitous bailment made for the bailor’s convenience and benefit  Bailment for the bailee’s sole benefit ▪ A gratuitous bailment made for the bailee’s convenience and benefit  Bailment for the bailor’s and bailee’s mutual benefit ▪ Involves the bailor compensating the bailee for services the bailee renders Rights of the Bailee  Absent a contrary agreement, a bailee may ▪ Control and possess the bailed property during the term of bailment agreement ▪ In some cases, use the bailed property ▪ Except in a gratuitous bailment, compensation ▪ Place a possessory lien on the bailed property or fully compensated ▪ Limit its liability for damage to the bailed property Duties of the Bailee  Absent a contrary agreement, a bailee must ▪ Take reasonable care of the bailed property

▪ Surrender the bailed property to the bailor or dispose of it in accordance with the bailor’s instructions ▪ Bailee may be excused from this latter duty if the bailment was destroyed, lost, stolen through no fault of the bailee Rights of the Bailor  Absent a contrary agreement, a bailor has the right to expect that the bailee ▪ Protect the bailor’s property with reasonable care while in the bailee’s possession ▪ Use the property as agreed ▪ Relinquish or dispose of the property as directed ▪ Will not convert the goods unless agreed ▪ See that any repairs or service to the property are done in a workmanlike manner ▪ Bailee’s liability will not be limited except as the bailor agreed and the law permits Duties of the Bailor  Absent a contrary agreement, a bailor must ▪ Compensate the bailee as agreed ▪ Notify the bailee before or when the bailment arises of all known or reasonably discoverable defects Special Types of Bailments  Common Carrier – someone who provides publicly available transportation services for a fee and is strictly liable for any loss of or damage to the bailed property after taking delivery or the bailed property ▪ Exceptions to strict liability ▪ an act of God ▪ a public enemy’s act ▪ bailor’s act ▪ governmental order ▪ bailed property’s inherent nature  Warehouse Companies – someone who provides storage for a fee and is liable only for loss of or damage to the bailed property that results from its negligence ▪ As a professional bailee, the warehouse owes a higher degree of care than an ordinary bailee

 Hotel Operators – someone who provides public lodging as a regular business and is strictly liable for any loss of or damage to a guest’s property ▪ strictly liable, if at all, only to guest ▪ may avoid strict liability by providing a safe for the guests’ use...