Personal Property Flashcards
Bailor
The property owner
Bailee
The person holding the property
What is required to establish a bailment?
The bailor must (1) deliver physical possession and control of personal property to the bailee, (2) who must knowingly accept that possession with (3) the intention to care for it and return it as agreed upon.
Gratuitous Bailment
Where the bailee holds the property for the sole benefit of the owner.
What is the standard of care for gratuitous bailments?
The bailee is held to a standard of only slight diligence and must avoid gross negligence.
Mutually Beneficial Bailment
Where the bailment is for the mutual benefit of the bailor and bailee.
What is required in mutually beneficial bailments?
Ordinary due care is required, and the bailee must avoid negligence.
Bailment for Sole Benefit of Bailee
When a person borrows another’s personal property.
What duty of care does a bailee have when borrowing personal property?
The bailee is held to the greatest duty of care, where even slight negligence may give rise to an action for damages.
Can a bailee disclaim liability?
Generally, no. A limitation by special contract requires a showing that the bailor had notice of the terms and assented to them.
Gift
A voluntary transfer of property by one person to another without any consideration.
Absolute title passes at completion.
Donor
The gift giver
Donee
The recipient of the gift
What is required for a valid gift?
(1) Donative intent
(2) Delivery (actual or constructive)
(3) Acceptance.
Inter Vivos Gift
The donor parts with control during their life, intending that title passes immediately and irrevocably to the donee.
Third Party Intermediary of Gift
Presumed to be acting for the donee, unless the facts show otherwise.
Who has the burden of proof in claiming a gift?
The burden rests upon the party claiming the gift to prove the essential elements by clear and convincing evidence.
Exception to burden of proof regarding gift
A conveyance from a parent to child is often presumed to be a gift, shifting the burden of proof.
Finding or Conversion
One who is not first in the chain of title, and who obtains possession by a finding or conversion rather than by gift or sale, has a right to possession that is inferior to the prior possessor’s but superior to subsequent finders or converters of the property.
Finder
A finder is one who discovers lost or mislaid property and asserts possession over it with intent to control the property. They do not acquire title to the property, but only a possessory interest.
Lost Property
Property which the owner has parted with accidentally and involuntarily through negligence or inadvertence.
What rights does the Finder of Lost Property acquire?
A right of possession superior to all others except the prior owner.
Do trespassers acquire possessory rights in property found on private property?
No, the owner of the place where the property was found (the locus in quo) assumes the right of possession.
Do non-trespassors acquire possessory rights in property found on private property?
Yes, as the finder.
Unless it is a highly private locus (generally not open to the public). In that case, the owner of the locus, not the finder, acquires possessory rights.
Mislaid Property
Property which the owner has voluntarily and intentionally placed somewhere and then forgotten.
Who acquires the right of possession of Mislaid Property?
The owner of the site obtains the right to possession until the property is claimed by the true owner.
The finder of mislaid property acquires no right of possession.
Treasure Trove (common law)
Gold, silver, jewels, or money hidden for safekeeping by an unknown owner - title goes to the finder as against everyone but the true owner.
Treasure Trove (modern trend)
Title passes to the owner of the land upon which the treasure was found.
Buried Chattel
Things embedded in the soil which cannot be classified as either treasure trove or lost property.
They belong to the owner of the land, not the finder.
Duty of Finders
If a finder knows or has reasonable means of discovering the identity of the true owner, they must take steps to notify the true owner that the property has been found.
Employee Finder
If an employee finds an item in the course of his employment, the employer has the right to possess the item. And if the chattel is found on the employer’s property, the employee has a duty to turn it over to the employee.
UCC-Entrustment
Entrusting goods to a merchant who deals in goods of the kind gives the merchant power to transfer all rights of the entruster to a buyer in the ordinary course of business.
Buyer in the Ordinary Course of Business
A person who buys in good faith and without knowledge that the sale violates the ownership rights of a third party.
Can the true owner reclaim goods from a bona fide purchaser?
Yes, the true owner’s ownership is superior.
