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Unformatted text preview: Chapter 21
PERSONAL PROPERTY AND BAILMENTS Personal Property
Personal property rights consist of whole or
partial ownership rights in things that are tangible and movable as well as rights in things that are intangible. Property rights include the right to possess, use, enjoy or dispose of the property. 2 Title to Personal Property Personal property may be acquired: By purchase By gift where the donor has intent to make a gift and
delivers possession to the donee or makes a constructive delivery. By occupation (possession) and, under some statutes, by finding. The state may acquire property by escheat, which is the transfer of unclaimed goods from a (non-owner) holder to the state government.
Inter Vivos Gifts: An ordinary gift between
two living persons is called. Both donative intent and delivery are required. Delivery can be actual or constructive. If Donor dies before gift is complete, the gift
fails. Gift Causa Mortis: made with contemplation of imminent death. If Donor survives, gift is revocable.
Gifts and Transfers to Minors. Uniform Gifts to Minors Act. Gift is final and irrevocable for tax purposes. Conditional Gifts. Condition precedent must be fulfilled. 5 Finding of Lost Property
Lost Property: owner intends to retain title. Finder retains title against all except true
owner. If there is no contract, the finder is not entitled to a reward. Finding in Public Place: finder must give to hotel or manager. 6 Occupation of Personal Property
Wild Animals. Person who acquires dominion over wild
animal becomes its owner. Abandoned Personal Property. Owner does not intend to reclaim possession. Finder acquires title to property. 7 Multiple Ownership of Personal Property All rights in a property can be held by one individual,
called being held in severalty. Ownership rights may be held concurrently by two or more individuals, in which case it is said to be held in co-tenancy. The major forms of co-tenancy are: (1) tenancy in common. (2) joint tenancy. (3) tenancy by entirety. (4) community property.
8 Types of Co-Tenancy
Tenancy in Common. Joint Tenancy. Ownership by two or more persons; interest may
be transferred or inherited (or bequeathed). 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. 9 Types of Co-Tenancy
Tenancy by 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. Community Property. Only property acquired during marriage. Some states, passes to surviving spouse; other
states passes to heirs. 10 Bailments A bailment occurs when 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. The bailee has possession, but not title. When a person comes into the possession of the personal property of another without the owner actually delivering it, the law classifies the relationship as a constructive bailment.
11 Required Elements of Bailment Bailor Agreement Delivery Bailee Acceptance of Delivery 12 Classifications of Bailments
Bailments may be classified in terms of benefit: (1) sole benefit of the bailor, (2) sole benefit of the bailee, or (3) benefit of both parties (mutual benefit
bailment). 13 Duty of Care
In some states, the standard of care required of
a bailee is related to the class of bailment: sole benefit of the bailor: the bailee is required to
exercise only slight care and is liable for gross negligence only sole benefit of the bailee: the bailee is liable for the slightest negligence for mutual benefit, as in a commercial bailment: the bailee is liable for ordinary negligence In other states, the courts apply a "reasonable
care under the circumstances" standard.
14 Duties and Rights of Bailee A bailee: must perform the bailee's part of the contract; must exercise reasonable care of bailed property; unless otherwise agreed, must bear the repair expenses incidental to the use of property in a bailment for hire situation; and must return the identical property. If a bailee injures a third person while driving a rented
motor vehicle, the bailee is liable to the third person as though the bailee were the owner of the vehicle.
15 Breach of Duty
Bailor may sue the bailee if the goods are
not redelivered according to the agreement. In a mutual benefit bailment, the bailor is under a duty to furnish goods reasonably fit for the purposes contemplated by the parties. Liability for Defects in Bailed Property. Contract Modification of Liability.
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This note was uploaded on 05/12/2010 for the course BUS 2241 taught by Professor Mcguinnes during the Spring '10 term at Valencia.
- Spring '10
- Business Law