Anderson 19th Ed. 2005

1
Chapter 21PERSONAL PROPERTYAND BAILMENTS
2
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.

3
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.

4
Gifts

• 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.

5
Gifts

• 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.

6
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.

7
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.

8
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.

9
Types of Co-Tenancy

• Tenancy in Common.
• Ownership by two or more persons interest may be
  transferred or inherited (or bequeathed).
• Joint Tenancy.
• 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.

10
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.

11
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.

12
Required Elements of Bailment
13
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).

14
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.

15
Duties and Rights of Bailee

• A bailee
• must perform the bailees 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.

16
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.