Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business law > Chapter 20: Personal Property and Bailments > Flashcards

Chapter 20: Personal Property and Bailments Flashcards

You may prefer our related Brainscape-certified flashcards:
Civil Procedure 1L flashcards MBE flashcards MPRE flashcards
1
Q

Property

A

A piece of land, or a thing, or an object

Also the rights and individual may possess in the piece of land/thing/object (to possess, use, dispose of)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Real property

A

Land and the things embedded in the land. (Also things attached to the earth and rights in those things)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Personal property

A

Property that is movable or intangible or rights in such things

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Types of personal property

A
  • whole or fractional rights in things that are tangible and movable
  • claims and debts (choses in action)
  • intangible property rights
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Chose in action

A

Intangible personal property in the nature of claims against another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Ways to acquire title to personal property

A
  • purchase (law or sales)
  • gift
  • finding lost property
  • occupation
  • escheat
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Transfer via theft

A

Transfers posession only. Not title

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Gift

A

Title to an owner’s personal property voluntarily transferred by a party not receiving anything in exchange

No consideration received (though may be in response to something)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Donor

A

Person making a gift

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Donee

A

Recipient of a gift

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Inter vivos gifts

A

Any transaction that takes place between living persons and creates rights prior to the death of any of them

Takes effect when donor:
1) expresses intent to transfer title at that time
(Not intent to confer benefit in future)
2) makes delivery of the property
(Requires intent to make it a gift)
- may be symbolic or constructive delivery

  • subject to the right of donee to disclaim the gift in a reasonable time after transfer
  • donee cannot sue for breach since there is no consideration and thus no contract
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Symbolic delivery

A

Also called constructive delivery

Delivery of goods by delivery of the means of control, such as a key or a relevant document of title

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Inter vivos gifts and donor death

A

If the donor dies before doing what is needed to make an effective gift then the gift fails. An agent or executor cannot perform the missing steps on behalf of the donor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Gifts causa mortis

A

Gift made by the donor in the belief that death was immediate and impending, that is revoked or is revocable under certain circumstances

A conditional gift. Donor can take property back if

  • donor dies not die
  • donor revokes gift before dying
  • donee dies before donor
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Gifts and transfers to minors

A

Provisions under uniform acts:

  • transferring property to a custodian to hold for the benefit of a minor (custodian has discretionary power to use property ONLY for the benefit of the minor, not for self.)
  • gift is final and irrevocable
  • custodianships terminate and property is distributed when minor reached 21
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Heath v. Heath

A
  • father Larry received money from his father and put into custodian bank accounts for his minor children (under uniform gifts to minors act)
  • he later closed those accounts and returned the money to his mother
  • children’s mother sued on behalf of the children contending that money was irrevocable gift
  • judgement for mother/children. Gift made under UMGA. Not believable that Larry didn’t understand that he had made an irrevocable gift
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Conditional gifts

A

Gift made subject to a condition

  • condition precedent (must happen before gift is transferred)
  • condition subsequent (if happens will terminate gift)

Engagement ring mostly considered conditional gift (may or may not require return - mostly do on the premise that fault cannot be determined)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Meyer v. Mitnick

A
  • Meyer gave Mitnick an engagement ring
  • engagement was broken off during prenup agreement discussion
  • Mitnick did not return the ring so Meyer sued for it’s return
  • Mitnick claimed unconditional gift/that because Meyer broke engagement she was entitled to keep ring
  • judgement for Meyer
  • engagement ring is a conditional gift
  • because fault is impossible to definitely determine the ring returns to the donor as condition is incomplete. Fault doesn’t matter
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Anatomical gifts

A

Governed by the Uniform Anatomical Gift Act

  • gift takes effect on death of the donor
  • may be made by persons over 18 of their own bodies, or (with some restrictions) next of kin
  • hospital can be sued for intentional infliction of emotional distress if misleads family members into consenting to donations
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Finding lost property

A
  • finder acquires possession, not title. Is required to surrender property when true owner establishes ownership
  • not entitled to a reward without a contract
  • if found in public place where it had intentionally been placed (likely owner will recall where it was left) finder must turn possession over to proprietor/manager of public place (does not apply if not seemingly intentionally placed)
  • some states allow finder to sell or keep property if owner doesn’t appear in stated time period. Required to make good faith effort to find owner
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

State v. Preston

A
  • Preston found diamond ring on floor of Walmart
  • testified that took it to pawn shop for safekeeping/ because would need the money to find the owner
  • convicted of theft (“appropriating another’s property where the actor knows the property was lost, not abandoned”)
  • appealed and conviction affirmed
  • definition of “lost” vs “abandoned”
  • if lost person who loses item retains ownership
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Lost vs abandoned

A

Lost: when the owner has parted with possession unwittingly and no longer knows the location (owner retains ownership)

Abandoned: when the owner intentionally relinquishes possession and rights to the property (owner loses ownership interest)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Occupation of personal property

A

In some cases title to personal property may be acquired by “occupation” - taking and retaining possession

Ex:
- wild animal. If obtains control becomes owner (but if killed/ captured on another’s land without permission it is property of landowner)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Abandoned personal property

A

Title to abandoned personal property may be acquired by the first person who obtains possession and control of it

Property only abandoned if abandoned totally voluntarily

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Ritz v. Selma United Methodist Church

A
  • home owned by Nelson’s was abandoned after their deaths due to unpaid real estate taxes
  • Selma United purchase property at a tax sale
  • upon raising the dwelling found $24k in cash buried in glass jars
  • nelson heirs claimed the money
  • church claimed it was theirs as part of the abandoned real estate
  • judgment for heirs. Burial of the jars speaks to intent to preserve, not abandoned
26
Q

Conversion

A

The act of taking personal property by a person not entitled to it and keeping it from it’s true owner or prior possessor without consent

The wrongful exclusionary retention of an owner’s physical property (applies also to tangible documents representing intangible rights)

27
Q

Williams v. Smith avenue moving co

A
  • Williams placed personal property from a gallery into Smith storage (operated by Faber family)
  • when Faber parent died the smith storage business was discontinued. Customers notified
  • sons not active in business removed property from storage and consigned it to auction
  • Williams sued for conversion
  • sons claimed had believed in good faith that property belonged to mother and that Williams lacked sufficient proof of ownership
  • judgment for Williams
  • proof of ownership sufficient
  • no proof of ownership by mother
  • good faith not a defense to conversion
    “Bailee cannot deny a bailor’s title as an excuse for refusing to redeliver property”
28
Q

Bailee

A

Person who accepts possession of a property

29
Q

Bailor

A

Person who turns over the possession of property

30
Q

Escheat

A

Transfer to the state of the title to a decedent’s property when the owner of the property dies intestate and is not survived by anyone capable of taking the property as heir

May be governed by uniform unclaimed property act

31
Q

Intestate

A

Condition of dying without a will as to any property

32
Q

Presley v. City of Memphis

A
  • Elvis (Presley) contracted with city of Memphis for coliseum ticket sales for concert
  • he died before concert
  • ticket presented for refund were refunded
  • widow sued for remaining unclaimed ticket sales (and interest)
  • judgement for state
  • under uniform disposition of unclaimed property act
  • ticket price was property of ticket holders not Elvis estate
  • windfalls go to state to benefit public, not individuals
33
Q

Severalty

A

Ownership of property by one person (person holds all rights to particular property)

34
Q

Cotenancy

A

When two or more persons hold concurrent rights and interests in same property

Forms include:

  • tenancy in common
  • joint tenancy
  • tenancy by entirety
  • community property
35
Q

Tenancy in common

A

Relationship that exists when two or more persons own undivided interests in property

Interest if tenant in common can be transferred or inherited

36
Q

Joint tenancy

A

Estate held jointly by two or more with the right of survivorship as between them unless modified by statute

(On death of joint tenant, remaining tenant takes property as holder in severalty)

No interest transferred to heirs. If transfered destroys joint tenancy and remaining joint tenant becomes tenant in common with person interest transferred to.

Some states require right of survivorship to be formally recognized in text of estate (if lacking ownership construed as tenancy in common)

37
Q

Lewis v. Rosebrook

A
  • rosebrook and lewis as couple had three joint accounts with right of survivorship at various banks
  • when relationship ended rosebrook transfered money from those accounts to accounts in her own name
  • Lewis’ daughter sued on his behalf: breach of oral trust and conversion of funds
  • judgement for Lewis. “Realities of ownership” = parties intended to be equal owners of account, rosebrook didn’t have the right to appropriate a the funds (had to return everything over her 50% share)
38
Q

Tenancy by entirety

A

(or tenancy by the entireties)
Transfer of property to both husband and wife

Right of survivorship cannot be extinguished and one spouse’s internet cannot be transferred to a third person

(In some jurisdiction rights to share the possession and profits may be transferred)

Creditors if only one spouse cannot reach the property while both are living

In many states granting an absolute divorce converts tenancy by the entireties to tenancy in common

39
Q

Community property

A

Cotenancy held by husband and wife in property acquired during their marriage under law of some states, principally in the southwestern US

Some statutes provide for right of survivorship
Others say half property of the deceased goes to heirs / disposed of by will

Property acquired during marriage is “prima facie” community property even if in a individual’s name unless it can be shown it was obtained with property possessed by individual prior to marriage

40
Q

Prima facie

A

Evidence that, if believed, is sufficient by itself to lead to a particular conclusion

41
Q

Bailment

A

Relationship that exists when personal property is delivered into the possession of another under an agreement, express or implied, that the identical property will be returned or will be delivered or disposed of in accordance with the bailment.

42
Q

Bailor

A

Person who turns over the possession of a property

43
Q

Bailee

A

Person who accepts possession of a property

Duty to use reasonable care while in position of the bailed property

44
Q

Johnson v. North Carolina department of cultural resources

A
  • Johnson in possession of collection of historic documents
  • loaned to North Carolina historical commission with specific provision for return as “he saw fit”
  • historical commission communicated understanding
  • almost a century later Johnson’s descendants brought action for a declaratory judgement that they were they owners of the collection
  • decision for the descendants
  • original transfer created a bailment that continued after Johnson’s death and passed to his descendanta
45
Q

Elements of a bailment

A
  • Agreement
    Express or implied
    “A contract to bail” (so all the elements of a contract)
    Must be for personal property (not real property)
    Need not be in writing
  • delivery and acceptance
    In the absence of a prior agreement to the contrary, a valid delivery and acceptance generally require that the bailee be aware the goods have been placed within the bailees exclusive possession or control
46
Q

Bailor’s interest in property

A

Usually owner but not required to be. sufficient that bailor have physical possession

47
Q

Bailee’s Interest in the bailed property

A

Has possession only. No legal title. Has duty to return property

If sells property transfers only possession and owner mat recover property from buyer

48
Q

Classification of ordinary bailments

A

Bailment for:

  • the sole benefit of the bailor
  • the sole benefit of the bailee
  • the mutual benefit of both
49
Q

Bailments for mutual benefir

A

Bailment in which the bailor and bailee both derive a benefit from the bailment

(Care or custody in exchange for payment. Though payment need not be cash)

50
Q

Gratuitous bailment

A

Bailment in which the bailee does not receive any compensation or advantage

Sole benefit of the bailor

51
Q

Constructive bailment

A

Bailment imposed by law as opposed to one created by contract whereby the bailee must preserve the property and redeliver it to the owner

(Government is bailee for impounded cars. Duty to keep safe and redeliver)

52
Q

Property placed in a rented space

A

Does not create a bailment. Goods not delivered to the owner of the storage space

(Safe deposit box is a bailment)

53
Q

Duties and rights of bailee

A
  • because bailment is a contract liable for ordinary contract damages for failure to perform
  • under a duty to care for bailed property (differs according to classification of bailment based on benefit
  • for benefit of the bailor liable only for gross negligence
  • for benefit of the bailee liable for even slight negligence
  • mutual benefit = duty of reasonable /ordinary care

Has a right to receive payment for charges due for storage or repairs and a right to keep posession of the bailed property till charges are paid

54
Q

Bailee’s lien

A

Specific, possessory lien of the bailee upon the goods for work done to them. Commonly extended by statute to any bailee’s claim for compensation, eliminating the necessity of retention of possession

Right to keep posession of bailed property till charges are paid

55
Q

Hadfield v. Gilchrist

A
  • Hadfield’s car was towed by Gilchrist Towing based on a municipal ordinance
  • when Hadfield retrieved the car it was extensively vandalized
  • Hadfield claimed constructive bailment for mutual benefit and breach of duty of care
  • Gilchrist claimed sole benefit of vehicle owner and limited duty of care
  • judgement for Hadfield
  • city ordinance creates a constructive bailment for mutual benefit
  • if bailor can prove if was a constructive bailment then bailee must prove that ordinary care was taken
56
Q

Bailment liability

A

Based on tort principles

57
Q

Burden of proof

A

Bailor sues for damages: must prove the bailee was at fault and fault was proximate cause for loss

Once proven that bailor delivered property to bailee in good condition bailor has burden of proof to show damage was not caused by their failure to exercise appropriate care

58
Q

Liability for defects in bailed property

A

Mutual benefit bailment: bailor just make reasonable investigation to uncover defects and just inform the bailee of known defects. (Bailor liable for harm resulting from defects)

For sole benefit of bailee: bailor must inform bailee of known defects

59
Q

Bailments for hire: rental of vehicles/machinery/ equipment

A

Uniform commercial code

Implied warranty of merchantability and fitness for a particular purpose for the protection of bailee customers

60
Q

Contract modification of liability

A
  • ordinary bailee may limit liability (excluding willful misconduct) by agreement or contract
  • limitation of liability for negligence must be expressly worded (in some states this may be prohibited by statute for certain situations)
  • limitation must be called to the attention of the bailor if printed on claim check

Business law (15 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions