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Unformatted text preview: C HAPTER 17 P ERSONAL P ROPERTY Objectives After studying this chapter, you should have an understanding of: the different forms of personal property how ownership and possession of personal property are acquired the obligations and rights associated with personal property the nature of the bailment relationship various types of bailment for reward Learning Outcomes Understand the difference between tangible and intangible personal property (page 405) Recognize that ownership and possession can be separated (page 406) Understand the concept of bailment (page 409) Understand the liability of bailees and how bailees can limit that liability (pages 412 413) Recognize the importance of insurance on goods while held by a bailee, especially when the contract of bailment contains a limitation of liability clause (page 413) Understand the difference between a chattel lease, an operating lease, and a financing lease (pages 416 417) Understand the rights and liabilities of the parties while goods are in storage, in the shop for repairs, or in transit (pages 417 419) Chapter Summary The owner of personal property has the right to deal with that property in any way he chooses. He can keep it, sell it, rent it, or allow someone else to possess it for a temporary period of time. The owner bears the risk of loss, even when the property is in someone elses possession. The person with possession has to abide by a certain standard of care, but may use a contract to limit responsibility for damages when he breaches that standard of care. Therefore, the owner should ensure that adequate insurance is maintained on the property. If the owner leases the property to another person, the contract should set out all the rights and responsibilities of the parties. At the end of the lease, the contract may provide for the return of the property or the purchase of the property. Owners who have delivered their goods to carriers for transport to another destination should particularly be aware of the limitation of liability clauses in the contract of carriage and consider this factor when purchasing insurance. 2008 BY NELSON, A DIVISION OF THOMSON CANADA LTD. PART 5: PROPERTY Study Outline Use this outline to prepare a complete set of notes for this chapter. Personal Property page 405 ______________________________________________________________________ ______________________________________________________________________ Tangible property ____________________________________________________ Intangible property___________________________________________________ Ownership page 406 ______________________________________________________________________ ______________________________________________________________________ Acquisition without ownership_____________________________________________ ______________________________________________________________________ Possession without ownership ______________________________________________...
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- Fall '08
- Business Law