Chpt 15: Bailment Flashcards
Bailment
What is bailment?
A transfer of personal property without ownership.
The transferor is the bailor and the transferee is the bailee.
What are the essential elements of bailment?
1) Delivery of possession without intention to transfer title
2) The intention that the property will be returned to the bailor
Does bailment require a contract?
Give an example
No.
e.g. If I lend my car to a friend, that is bailment without a contract
Does bailment need to be voluntary? \
Give an example
No.
e.g. If I leave my coat in my friends car, that person becomes the bailee unintentionally
What is a gratuitous bailment?
When there is no consideration to bailment or no intention to create a contractual obligation
What is a sub-bailee
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.
How does a bailee avoid liability if he provides the property to a sub-bailee
He gets permission from the original bailor to give the property away
Who is liable for damages in bailment?
The bailee is always under a duty of care to take care of the property bailed to them
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?
No, the bailee will only be free of liability if the property is damaged via activities related to the contract
Who has the burden of proof if the property is damaged?
The bailee
What is the order of standard of care from highest to lowest?
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
What happens if the bailor doesn’t give all the goods in the first place?
Bailee can sue for compensation of lost profits
What is lien?
The right sometimes given to bailees (e.g. innkeepers, lawyers) to keep objects given to them until compensation for services given
What is right of sale?
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
Can warehousing firms give back items of equal value to bailor?
No, no substitutions UNLESS it is a fungible good
Do warehousers have lien? Right to sale?
Yup
What is the DOC and SOC for repairers?
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
What are the three types of transport carriers?
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
What are the standards of care for all three types of carriers?
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
When is a innkeeper liable?
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
