Lecture

Question 1

T/F: If property is mislaid, the owner or occupier of the premises on which the property is found will prevail over the finder.

Answer 1

True

Question 2

T/F: If property is lost, the general rule is that the finder wins and the owner or occupier of the premises loses

Answer 2

True

Question 3

What are the three exceptions to the rule for lost property?

Answer 3

1. if the finder of the lost property is a trespasser, the owner or occupier of the premises will prevail.
2. the master prevails over the servant who finds.
3. if lost property is found in a highly private location, a place not open to the public, the owner or occupier of the property will prevail over the finder.

Question 4

What are examples of a highly private location?

Answer 4

a home or a private office

Question 5

Two kinds of gifts

Answer 5

• gifts inter-vivos

- gifts causa mortis

Question 6

T/F: Acceptance of a gift is implied by silence.

Answer 6

True

Question 7

The only way there is no acceptance of a gift is if you have . . . .

Answer 7

-explicit rejection by words or deeds

Question 8

Ways to satisfy the delivery requirement

Answer 8

• handing something to someone clearly is valid
• where donee is already in possession of the item when the gift is attempted
• where the donor hands over something that is representative of the object of the gift (e.g. car keys)

Question 9

Donor makes out a check to donee, or a promissory note to a donee and gives it to the donee. When is delivery completed?

Answer 9

Delivery is not completed until the check is chased or the until the note is paid

Question 10

Donor hands the donee a check or note made out to the donor by a third party. When is delivery complete?

Answer 10

It is! This is valid delivery, even if the donor has not endorsed the check or note to the donee.

Remember: if it’s the donor’s instrument, the delivery is not complete until cashed; if it’s someone else’s instrument, a valid delivery RIGHT NOW!

Question 11

Donor hands donee a stock certificate representing shares of a corporation without endorsing the stock over to the donee or told the corporation of the transfer. Is this a valid delivery?

Answer 11

Yes!

Question 12

Two special bailment situations

Answer 12

1. safe deposit boxes - generally regarded as a bailment, even though the bank usually has no idea of what is in the box (thus, contents are bailed, even if bank does not know what they are.
2. parking lots/garages - if parking lot/garage keeps the keys, the car is bailed. If it is a self-park lot where the driver keeps the keys, the car is NOT bailed.

Question 13

T/F: A bailee can limit liability for bailee’s liability for ordinary negligence.

Answer 13

True, SO LONG AS bailor received effective notice of the limitation

Question 14

Define: Treasure Trove

Answer 14

Treasure trove is any gold or silver in coin, plate, or bullion found concealed (e.g., in the earth, in a house, in a bureau, etc.), the owner of which is unknown.

Treasure trove has been held to include paper representatives of gold and silver.

Question 15

According to common law, who does treasure trove belong to?

Answer 15

According to the common law, treasure trove belongs to the finder as against everyone in the world except the true owner.

In addition, the fact that the finder was a trespasser would not deprive him of his possessory rights.

Question 16

When a trespasser adds value to an original owner’s chattel:

Answer 16

The trespasser CANNOT sue for compensation for the value of his labor or materials added to the chattel.

Question 17

To plead adverse possession, a party must show that possession was:

Answer 17

• actual
• open and notorious
• hostile and adverse
• exclusive and continuous

Question 18

Title to personal property by adverse possession results from the running of a statute of limitations. Virginia law requires that the cause of action for recovery of the property be brought within how many years after it accrues?

Answer 18

5 years.
When the 5 years have run, the presumption that one in possession has the right to possession cannot be overcome by the former owner.
The party in possession thereafter has an enforceable right to possession superior to everyone and thus becomes the true owner.

Question 19

The burden of proving that a gift has been made is on the donee, who must establish donative intent and delivery of the subject of the gift by . . .

Answer 19

clear and convincing evidence

Question 20

T/F: An inter vivos gift, one made, is irrevocable.

Answer 20

True!

Question 21

The basic ways of accomplishing delivery are. . .

Answer 21

• actual physical delivery
• constructive delivery
• symbolic delivery

Question 22

Constructive delivery

Answer 22

Occurs when it would be impossible or impracticable to manually deliver an item because of its size or location. In such cases, the delivery requirement will be satisfied if the donor surrenders as much control over the subject matter of the gift as he presently possesses.

Question 23

Symbolic delivery

Answer 23

When the donor hands over some object, other than the item given, that is symbolic of the item.

• Symbolic delivery is most commonly effectuated by delivering a written instrument, a “deed of gift.” To be sufficient, the requirements are that the writing should manifest the donative intent, describe the subject matter of the gift, be signed by the donor, and be delivered.

Question 24

T/F: When a gift is beneficial to the donee, acceptance by the donee is presumed.

Answer 24

True.

Question 25

Elements of a valid gift causa mortis

Answer 25

• present mental capacity
• the gift must be personal property
• delivery and acceptance
• anticipation of death; and
• absence of revocation

Question 26

What are the conditions for a lienor’s right to possess?

Answer 26

• a debt arises from services performed on the thing;
• title to the thing is in the debtor (lienee); and
• possession of the thing is with the creditor (lienor)

Question 27

When does a constructive or involuntary bailment arise?

Answer 27

a constructive or involuntary bailment arises by operation of law in a few situations where the agreement of the parties is implied.

For example, a constructive bailment arises when someone finds lost goods and retains physical custody of the goods or when a landlord repossesses premises.

Question 28

T/F: The bank is a bailee because although the bank and renter of the safe deposit box have duplicate keys, the renter cannot have access to the box without consent by the bank.

Answer 28

True.

Question 29

If bailed goods are damaged or lost through no fault of the bailee, the loss falls on ___________.

Answer 29

the bailor

Question 30

Upon the termination of a bailment . . .

Answer 30

the bailee owes a duty to redeliver or account for the thing bailed in its original or agreed upon, altered form.

Question 31

A conversion by a bailee is when:

Answer 31

The bailee has authority to use a chattel in a particular way, but uses it in another manner, or in the same manner but to a greater extent than authorized.