Personal Property / Bailment

Question 1

Chattels

Answer 1

moveable things (electronic devises, clothes, animals, motor vehicles)

Question 2

Chose in Action

Answer 2

an intangible right, claim one party has against another, of value to claim holder (eg. debt claim, insurance beneficiary)

Question 3

Fungibles

Answer 3

Goods inherently indistinguisable from similar items, not packaged (eg. wheat, oil, lumber, produce)

Question 4

Fixtures

Answer 4

chattels that when attached to the land that becomes part of the real proprty - when goods installed

Question 5

When does a chattel become a fixture?

Answer 5

To enhance the land - then likely a fixture

1. structurally incorporated into property
2. intended to stay
3. removal would cause damage

Exception: Commercial trade fixtures (eg displays, shelving, etc may be removed)

Should mutually decide beforehand

Question 6

Law of finders

Answer 6

Common Law Rule: the one person who has a better claim to goods that are found is the original owner (Starting point)

• if in public space, the finder (except maybe original owner if they are looking for it or not, no need to seek original owner
• if in private space, the owner or occupier of the space

-public portion of private property, the finder (except original owner)

-if finder is an employee of land owner, owner of land has claim (except original owner)

**Finder has obligation to return goods when possible and to look after goods

**if goods abandoned, original owner loses right

Question 7

Bailor, Bailee

Answer 7

Bailor: owner giving up possession
Bailee: party acquiring possession

Question 8

Consignment

Answer 8

in bailment

when a person gives permission to another to take care of the property until item sold to final buyer (eg. auctions, shipping, goods transfers)

Question 9

Bailment Requirements

Answer 9

1. temporary transfer of possession
2. voluntary acceptance of common law duty of bailment

Question 10

Bailment for Value

Answer 10

of mutual benefit to parties, consideration flowing between parties

Question 11

Reverse Onus

Answer 11

proof of negligence

presumption of negligence on the part of bailee if damage or loss occurs

owner only needs to prove bailment relationship and damage occurred

Bailee can rebut

Question 12

Gratuitous Bailment

Answer 12

Only one party recieves a benefit (eg. borrowing goods)

Reverse Onus applies

2 types:

1. Bailment for benefit of bailee - standard of care high for bailee
2. Bailment for benefit of the Bailer - only gross negligence on the part of the bailee brings liability

Question 13

Involuntary Bailment

Answer 13

When goods have been left without permission

no duty of care until goods have been accepted and control over goods

Then obligated:
take care of goods
return to bailor

Question 14

Bailees Hierarchy of Care

Answer 14

1. Common carriers and innkeepers
2. Gratuitous bailment for benfiit of bailee
3. Bailment for value
4. Gratuitous bailment for benefit of bailor
5. involuntary bailment