Chapter 23 - Personal Property and Bailments

Chapter 23 - Personal Property and Bailments

CHAPTER 23

PERSONAL PROPERTY AND BAILMENTS

LEARNING HINTS

1. The word property is used to refer to something that is capable of being owned. It is also used to refer to a right or interest that allows a person to exercise dominion over a thing that may be owned or possessed, even though it is not owned by that person.

2. Property ownership refers to a set of rights (sometimes referred to as a “bundle of rights”) that the law recognizes and enforces. For example, ownership of a building includes the right to use, enjoy, sell, mortgage, or rent the building. These rights are not unlimited and can be restricted by law.

3. Define real property, including the concept of fixtures. Distinguish real property from personal property. Explain why personal property can be tangible or intangible, but real property is always tangible.

4. Whether a finder of lost property can keep it depends on whether it is abandoned property, lost property, or mislaid property. What are the differences among these classifications? Would a library book found on the street become the property of the finder? Why or why not?

5. Note that for a gift to be effective, it must be delivered to the donee. Thus if I place an item in my safety deposit bank box with a note “give to my niece upon my death,” this is not an effective gift because it has not been delivered. To make such a gift (called a devise upon death,) I should put this bequest is a legally valid will.

6. Compare and contrast the traditional rule concerning gifts given in contemplation of marriage with the modern rule concerning such gifts.

7. What is a bailment? What are the basic duties of a bailee? Does a bailor have any duties?

8. What are common carriers, and why are they held to a higher standard than private carriers?

CHAPTER OUTLINE AND KEY CONCEPTS

I. Learning Objectives

II. Nature of Property

III. Classifications of Property

A. Personal Property versus Real Property

1. Compare and contrast the characteristics of personal from real property.

2. What is a fixture?

B. Tangible versus Intangible Personal Property

C. Public and Private Property

IV. Acquiring Ownership of Personal Property

A. Production or Purchase

B. Possession of Unowned Property

C. Rights of Finders of Lost, Mislaid, and Abandoned Property

1. The rights of a finder will be determined according to whether the property is classified as abandoned, lost, or mislaid. Describe the differences among these classifications.

2. Estray statutes

3. Example: Corliss v. Wenner and Anderson, 2001 Ida. App. LEXIS 79
(Ct. App. Idaho 2001)

D. Legal Responsibilities of Finders

E. Leasing

1. How does a lease differ from ownership of property?

F. Gifts

1. How does the law define a gift (three required elements)?

2. Gifts can be either inter vivos or causa mortis. Describe the difference.

G. Conditional Gifts

1. Example: Lindh v. Surman, 742 A.2d 643 (Sup.Ct.Pa.1999)

H. Uniform Transfers to Minors Act

I. Will or Inheritance

J. Confusion

K. Accession

V. Bailments

A. Nature of Bailments

1. Bailor

2. Bailee

B. Elements of a Bailment

1. Three elements are required to create a bailment. Describe each.

C. Creation of a Bailment

D. Types of Bailments

1. Bailments for Benefit of Bailor

2. Bailments for Benefit of Bailee

3. Bailments for Mutual Benefit

E. Special Bailment

F. Duties of the Bailee

1. Describe the two basic duties of the bailee.

G. Duty of Bailee to Take Care of Property

H. Bailee's Duty to Return the Property

I. Bailee's Liability for Misdelivery

J. Limits on Liability

1. Example: Weissman v. City of New York, 860 N.Y.S.2d 393 (City of N.Y.,

Civil Court 2009)

K. Right to Compensation

L. Bailor's Liability for Defects in the Bailed Property

VI. Special Bailments

A. Common Carriers

1. Compare the level of responsibility of common versus private carriers.

B. Hotelkeepers

C. Safe-Deposit Boxes

D. Involuntary Bailments

VII. Documents of Title

A. Warehouse Receipts

B. Bills of Lading

C. Liability of Carriers of Goods (The Global Business Environment)

D. Duty of Care

1. Example: Gyamfoah v. EG&G Dynatrend (now EG&G Technical Services), 51 U.C.C. Rep. 2d 805 (E.D. Penn. 2003)

E. Negotiation of Document of Title

F. Rights Acquired by Negotiation

G. Warranties of Transferor of Document of Title

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