Bailments

Question 1

General

Answer 1

General - when someone passess possession of her property to someone without passing title

Ex: coat check at a restaurant, valet parking

Definition - deilvery of personal property by the bailor (owner) to another person (baliee) for a period of time without ownership of the property passing to the bailee and can be done by contract or gratuitously.

Rule - three elements

1. Actual possession of the goods by the bailee
2. Knowledge of exactly what is possessed by the bailee
3. Consent to possession

Question 2

Conditional Bailment

Answer 2

General - bailor gives bailee possesion for a specific purpose and can have express conditions attached to the bailment.

Damage - bailee is strictly liable to bailor for damages resulting from a violation of the bailment terms

Employee - not a bailee for employer’s goods because they are an agent of the employer

Consignment - bailment for conditional purpose of bailee selling the goods

Pledge - bailor gives bailee a pledge of collateral goods against the debt they are contracting

Question 3

Duties of Bailee

Answer 3

Situations:

1. if bailment is entirely for benefit of the bailor, then bailee owes slight duty of care.
2. if bailment is mutually beneficial, then bailee owes an ordinary duty of care.
3. if bailment is entirely for benefit of bailee, then bailee owes a high duty of care.

Strict Liability - resreved for cases in which bailee violats terms and conditions of bailement, including delivery and redeilvery

Insurer - bailee is not an insurer for goods, except inn keepers

Question 4

Rights of the Bailee

Answer 4

Interest - bailee steps into bailor’s possessory interest; can bring actions a bailor can; may be subject to creditors of the bailor

Expenses - bailor will pay for extraordinary expenses and baliee can put a lien on the property

3P Interference - bailee can bring action against third party who interfere with bailment

Question 5

Rights of Bailor

Answer 5

Damages - bailor can bring action for damages occuring during bailment

Breach of K - can bring action for breach of K

3P Interference - can bring action for third parties who interfere with bailment

Defects - bailor must inform compensated bailee of any defects with the personal property

Question 6

Termination of Bailment

Answer 6

Two means to terminate:

1. according to terms
2. conduct of the parties