Chpt 15: Bailment

Question 1

What is bailment?

Answer 1

A transfer of personal property without ownership.

The transferor is the bailor and the transferee is the bailee.

Question 2

What are the essential elements of bailment?

Answer 2

1) Delivery of possession without intention to transfer title
2) The intention that the property will be returned to the bailor

Question 3

Does bailment require a contract?

Give an example

Answer 3

No.

e.g. If I lend my car to a friend, that is bailment without a contract

Question 4

Does bailment need to be voluntary? \

Give an example

Answer 4

No.

e.g. If I leave my coat in my friends car, that person becomes the bailee unintentionally

Question 5

What is a gratuitous bailment?

Answer 5

When there is no consideration to bailment or no intention to create a contractual obligation

Question 6

What is a sub-bailee

Answer 6

Someone who receives the baiment of property from a bailee

e.g. I lend my car to a friend and he lends the car to his grilfriend.

Question 7

How does a bailee avoid liability if he provides the property to a sub-bailee

Answer 7

He gets permission from the original bailor to give the property away

Question 8

Who is liable for damages in bailment?

Answer 8

The bailee is always under a duty of care to take care of the property bailed to them

Question 9

If there is a contract accompanying the bailment and the contract says the bailee is not liable for damages, is the bailee always liability free?

Answer 9

No, the bailee will only be free of liability if the property is damaged via activities related to the contract

Question 10

Who has the burden of proof if the property is damaged?

Answer 10

The bailee

Question 11

What is the order of standard of care from highest to lowest?

Answer 11

Gratuitous - benefit to bailee

Bailment for value (take care of goods as a prudent and diligent person would take care of goods in a business transaction)

Grauitous - benefit to bailor

Question 12

What happens if the bailor doesn’t give all the goods in the first place?

Answer 12

Bailee can sue for compensation of lost profits

Question 13

What is lien?

Answer 13

The right sometimes given to bailees (e.g. innkeepers, lawyers) to keep objects given to them until compensation for services given

Question 14

What is right of sale?

Answer 14

If

• a contract says so
• certain time elapses
• warning is given
• sale is advertised
• it is held at a public auction

Then a bailee may sell bailed goods

Question 15

Can warehousing firms give back items of equal value to bailor?

Answer 15

No, no substitutions UNLESS it is a fungible good

Question 16

Do warehousers have lien? Right to sale?

Answer 16

Yup

Question 17

What is the DOC and SOC for repairers?

Answer 17

DOC: Take care of items while in possession

SOC: Make repairs in a competent manner by using the skill he/she has and return the goods in the promised time

Question 18

What are the three types of transport carriers?

Answer 18

1) Gratuitous - Anyone who agrees to move a good from one place to another without reward
2) Private - Business that undertakes the transport of goods on occasion in exchange for reward (but reserves the right to select when and when not to)
3) Common carrier - A business that publicizes itself as a transporter of goods for a reward

Question 19

What are the standards of care for all three types of carriers?

Answer 19

Gratuitous - Treat the goods with diligence and care of what a reasonable person would of his own property

Private - Treat the goods with the skill reasonable expected of a competent firm in its line of business

Common - Is always liable unless it is the case of:

• and act of god
• inherent vice in the good
• default by the shipper

Question 20

When is a innkeeper liable?

Answer 20

If property is stolen, lost or damaged as a result of a willful act, default or neglect by the innkeeper or employee

Innkeepers Act also says innkeepers can sell by public auction if fees aren’t paid by certain time