Personal Property: Bailments

Question 1

Bailment

Answer 1

A bailment is a transfer of possession of personal property by a bailor to a bailee without the transfer of title

Question 2

Bailment is usually made for a particular purpose, and after this purpose is performed…

Answer 2

the property must be returned to the bailor in the same condition it was given to the bailee.

Question 3

Gifts must have three elements

Answer 3

1. Donative intent
2. Delivery
3. Acceptance

Question 3

Three elements of bailment

Answer 3

1. Possession - Bailee must have physical possession of the property with intent to use the possession
2. Consent of baliee - Possession of the property cannot be involuntary
3. Bailee must have knowledge of the article for a bailment to exist
   Delivery without acceptance does not create a bailment

Question 3

Bailment: Concealed Property

Answer 3

A baliee may be held liable for a concealed item ONLY if it could be foreseeable [and without knowledge] that such an item might be present.

Question 4

Bailments are created by…

Answer 4

delivery of the property to the bailee must be accompanied by the knowledge and acceptance by the bailee of possession, and assumption of control over it

Question 4

Types of Bailment

Answer 4

1. Consignment = a special purpose allowing the consignee to hold the property for purposes of sale
2. Pledge = transfer of possession personal property to secure the performance of an obligation owed to the bailee

Question 4

Entrustment Rule & Bailment

Question 4

Baliee has possessory rights

Answer 4

superior to everyone else’s, except maybe the bailor, and can use the property within reason, considering the purpose of the bailment

Question 5

A balior is not responsible for…

Answer 5

the bailee’s negligent use of the property

Question 5

A baliee’s creditors cannot…

Answer 5

satisfy the baliee’s debts using the property

Question 5

the standard of care upon which the baliee is expected to have depends on the nature of the bailment. There are three types of bailments…

Answer 5

1. Gratuitous bailment - bailee holds the popperty exclusively for the benefit of the bailor (uncompensated relationship – bailiee is held only to a slight standard of care – gross negligence only).
2. Mutually beneficial – commercial bailments typically (rental cars) (“due care” - ordinary negligence IF the bailee is at fault, but if not at fault, then the bailor is liable)

Question 6

Common carrier is…

Answer 6

an insurer, even if common carrier is not negligent, EXCEPT
for acts of god, acts of public enemy, takings of legal process, defective packaging, or perishable goods

Question 7

Baliee’s duty to deliver

Answer 7

Duty to redeliver or account for agreed upon delivery/state of goods

Question 8

Innkeepers

Answer 8

Liability of $300 max for personal property left in a guest room; $250 for fire

Question 9

Burden of proof:
Bailor needs to establish that there was a bailment, and that the property was not returned…

Answer 9

prima facie case that damage or loss of the bailed property was due to the baliee’s negligence. Burden is on the baliee to show it was not due to his negligence, because they made their standard of care under the bailment, then the baliee can prevail. Bailor can rebut.

Question 10

Financial responsibilities of baliee

Answer 10

if mutual benefit/commercial bailment, the baliee is entitled to the agreed upon compensation for her services or the market value of the services.
However, if the bailment is soley beneficial to the baliee - no compensation absent agreement
Although the baliee is liable for ordinary expenses that arise while maintaining the property, the balior is responsible for any extraordinary expenses