1 / 29

Chapter 43 Personal Property and Bailments

Chapter 43 Personal Property and Bailments. Learning Objectives. What is real property? What is personal property? What is the difference between a joint tenancy and a tenancy in common? What are the three elements necessary for an effective gift?

gunda
Download Presentation

Chapter 43 Personal Property and Bailments

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Chapter 43Personal Propertyand Bailments

  2. Learning Objectives • What is real property? What is personal property? • What is the difference between a joint tenancy and a tenancy in common? • What are the three elements necessary for an effective gift? • What are the three elements of a bailment?  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  3. Learning Objectives • What are the basic rights and duties of a bailee? What are the rights and duties of a bailor? © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  4. Introduction • Definition: Property consists of legally protected rights and interests a person has in anything with an ascertainable value that is subject to ownership. • Difference Between Real and Personal Property. • Ownership rights in each. • Acquiring Ownership of Personal Property. • Laws Governing Mislaid, Lost, or Abandoned Property. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  5. Property Ownership • Property ownership is viewed as a “bundle of rights”, including the: • Right to possess. • Right to sell. • Right to give. • Right to lease. • Right to destroy. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  6. Property Ownership • Fee Simple. • Owns the entire “bundle of rights”. • Fee simple gives the owner the maximum possible estate or right of ownership of real property, continuing forever. • Chapter 44 will deal with realty estates. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  7. Property Ownership A B C • Concurrent Ownership. • Tenancy in Common: A and B own an undivided interest in the property. Upon B’s death her interest passes to her heir, “C”. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  8. Property Ownership A B • Concurrent Ownership (cont’d). • Joint Tenancy. A and B own an undivided interest but upon B’s death, B’s interest passes to A, the surviving joint tenant. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  9. Property Ownership • Concurrent Ownership (cont’d). • Tenancy by the Entirety (not common): usually between husband and wife. • Community Property (limited # of states): acquired by couple during their marriage is owned as an undivided ½ interest in property (real and personal). © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  10. Acquiring Ownership of Personal Property • Possession. • Capture of wild animals (wild animals belong to no one). • Finding of abandoned property. • Adverse Possession. • Production. • Writers, inventors, manufacturers, and others who produce personal property acquire title to it. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  11. Acquiring Ownership of Personal Property • Gifts: voluntary transfer of property ownership from Donor (owner) to Donee (recipient) for no consideration. • Three Requirements For a Valid Gift: • Donative Intent: if challenged, court will look at language and circumstances.  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  12. Acquiring Ownership of Personal Property • Gifts (cont’d). • Three Requirements For a Valid Gift: • Delivery —actual or “constructive” (symbolic, such as keys to car). Donor must give up complete control or dominion. Delivery by a 3rd party is OK. • CASE 43.1 In re Estate of Piper (1984). • Acceptance by the Donee. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  13. Acquiring Ownership of Personal Property • Gifts (cont’d). • Gifts Intervivos and Gifts Causa Mortis. • Intervivos: gift while donor is living. • Causa Mortis: gift is made in contemplation of imminent death; if donor survives, gift is automatically revoked by law. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  14. Acquiring Ownership of Personal Property • Accession. • Someone adds value to a piece of personal property by use of either labor or materials. • Confusion. • Commingling so that a person’s personal property cannot be distinguished from another’s. Fungiblegoods consists of identical particles such as oil or grain. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  15. Mislaid, Lost, and Abandoned Property • Mislaid Property: Voluntary placed somewhere, then inadvertently forgotten. Finder is steward for true owner. • Lost Property: Involuntarily left. Property owner acquires title against whole world, except for true owner. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  16. Mislaid, Lost, and Abandoned Property • LostProperty: Involuntarily left. • Finder must return to true owner or be liable for conversion. • Conversion of Lost Property: when finder of lost property knows the true owner and fails to return property. • Estray Statutes: facilitate return of property and incentive to finders.  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  17. Mislaid, Lost, and Abandoned Property • AbandonedProperty: Discarded by true owner with no intention of recovering. • Acquires title against all the world, including the original owner. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  18. Bailments • A bailmentis: • Formed by the delivery of personal property, without transfer of title, by one person (Bailor) to another (Bailee), usually under an agreement for a particular purpose. • Bailed property must be returned by the Bailee to the Bailor in the same or better condition. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  19. Bailments • Elements of a Bailment. • Personal Property. (Tangible or Intangible--but not persons or realty.) • Delivery of Possession Without Title: bailee given exclusive control or possession. • May be actual (physical) or constructive. • Bailee must knowingly accept (Bailee must intend to exercise control over chattel). • What about “Involuntary” Bailments?  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  20. Bailments • Elements of a Bailment. • Bailment Agreement: express or implied. • Ordinary Bailments. • For the Sole Benefit of Bailor: known as a gratuitous Bailment; Bailee owes Bailor a low duty of care, liable only for gross negligence. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  21. Bailments • Ordinary Bailments(cont’d). • For the Sole Benefit of Bailee: Bailee owes Bailor a high duty of care and is liable for even slight negligence. • Mutual Benefit Bailment: most common. Each party owes the other a reasonable duty of care. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  22. Ordinary Bailments: Duty of Care Benefit of Bailor Benefit of Bailee Mutual Benefit Reasonable Care High Duty of Care Low Duty of Care © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  23. Bailments • Ordinary Bailments (cont’d). • Rights of the Bailee. • Right To Possess. • Right to Use: Bailee may acquire or use property temporarily. Title does not pass. • Rights of Compensation: reimbursed for costs or services as provided in the agreement. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  24. Bailments • Ordinary Bailments (cont’d). • Rights of the Bailee. • Right to Limit Liability. • Duties of the Bailee. • Duty to Return bailed property in same condition to Bailor. Bailee may liable for conversion and/or negligence. • CASE 43.2 LaPlace v. Briere (2009). Why wasn’t Briere liable for the horse’s death? © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  25. Bailments • Ordinary Bailments (cont’d). • Duties of the Bailor. • Right to have property protected and used as agreed. • Right to have property back at end of bailment with service or repair done properly. • Right to have the Bailee not convert. • Right to not be bound to limitation of liability unless Bailor knows.  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  26. Bailments • Ordinary Bailments (cont’d). • Duties of the Bailor (cont’d). • Duties to Reveal Defects: • Mutual Benefit Bailment: bailor has duty to notify bailee of all known defects and hidden defects the bailor knew or should have known about. • Bailment for Bailee’s Sole Benefit: duty to notify of any known defects.  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  27. Bailments • Ordinary Bailments (cont’d). • Duties of the Bailor (cont’d). • Warranty Liability for Defective Goods. • Special Types of Bailments. • Publicly licenses to provide transportation services to general public. • Common Carriers are strictly liable for damages except if the damages caused by: • An act of God.  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  28. Bailments • Special Types of Bailments. • Common Carriers are strictly liable for: • An act of the public enemy. • An order of the public authority. • An act of the shipper. • The inherent nature of the goods. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

  29. Bailments • Special Types of Bailments. • Warehouse Companies: • Owe duty of reasonable care. • Can’t exculpate, can limit. • Innkeepers: • Owe duty of strict liability, modified by state statutes; if innkeeper provides safe and notifies guests. • If parking area provided and innkeeper accepts bailment, then may be liable. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

More Related