Property Law Bailments Flashcards
The bailor vs the bailee: This party delivers the bailment
The bailor
Without transferring title for a specific purpose (ex loan, lease, repair, or transport)
The bailor vs the bailee: The person receiving the bailement
The bailee
Bailment Real or Personal Property
Only personal property (not real property) can be bailed
delivery of possession
-Without transferring title for a specific purpose (ex loan, lease, repair, or transport)
-the bailee must have exclusive possession and control
-the bailee must knowingly accept the property
Types of Bailment Bailment for the Sole Benefit of the Bailor vs Sole Benefit of the Bailee vs Mutual Benefit : Known as gratuitous bailment
bailment for the sole benefit of the bailor
Types of Bailment Bailment for the Sole Benefit of the Bailor vs Sole Benefit of the Bailee vs Mutual Benefit : Bailee owes a slight duty of care; liable only for gross negligence
bailment for the sole benefit of the bailor
Types of Bailment Bailment for the Sole Benefit of the Bailor vs Sole Benefit of the Bailee vs Mutual Benefit : Example Allen asks Sumi to store his car in her garage for free. Sumi is only liable for damage caused by gross negligence
Sole Benefit of the Bailor
Types of Bailment Bailment for the Sole Benefit of the Bailor vs Sole Benefit of the Bailee vs Mutual Benefit : Bailee owes utmost care; for even slight negligence
Bailment for the sole benefit of the bailee
Types of Bailment Bailment for the Sole Benefit of the Bailor vs Sole Benefit of the Bailee vs Mutual Benefit : Bailee borrows the property for their benefit
bailment for the sole benefit of the bailee
Types of Bailment Bailment for the Sole Benefit of the Bailor vs Sole Benefit of the Bailee vs Mutual Benefit : Bailee borrows the property for their benefit
Bailment for the Sole Benefit of the Bailee
Types of Bailment Bailment for the Sole Benefit of the Bailor vs Sole Benefit of the Bailee vs Mutual Benefit : Ex Jeremy borrows Sumi’s boat. IF he damages it through negligence, he is liable
Bailment for the Sole Benefit of the Bailee
Types of Bailment Bailment for the Sole Benefit of the Bailor vs Sole Benefit of the Bailee vs Mutual Benefit : Contractual arrangement
if contractual. arrangement for mutual gain
Mutual Benefit Bailment
Types of Bailment Bailment for the Sole Benefit of the Bailor vs Sole Benefit of the Bailee vs Mutual Benefit : Ex bailment for hire
mutual benefit bailment
Types of Bailment Bailment for the Sole Benefit of the Bailor vs Sole Benefit of the Bailee vs Mutual Benefit : Bailee owes a reasonable duty of care
Mutual Benefit Bailment
Types of Bailment Bailment for the Sole Benefit of the Bailor vs Sole Benefit of the Bailee vs Mutual Benefit : Eg Allen pays Midas to change his car’s oil. if Midas is negligent (eg fails to replace the oil properly), Midas is liable for resulting damages
Mutual Benefit Bailment
Special Type of Bailments (Common Carriers, Warehouse Companies, Hotel Operators): Transports goods for the public
Common Carriers
Special Type of Bailments (Common Carriers, Warehouse Companies, Hotel Operators): Held to strict liability (responsible for all losses and damages except for natural disasters or acts of war)
Common Carriers
Special Type of Bailments (Common Carriers, Warehouse Companies, Hotel Operators): permitted to set a monetary cap on their liability for damages. This limitation must comply with government regulations and is often stipulated in a written contract or tariff.
Common Carrier
Special Type of Bailments (Common Carriers, Warehouse Companies, Hotel Operators):Can set a maximum allowable value for the items they agree to transport.
common carrier
Special Type of Bailments (Common Carriers, Warehouse Companies, Hotel Operators): Store goods from compensation
Warehouse Companies
Special Type of Bailments (Common Carriers, Warehouse Companies, Hotel Operators): Liable for loss or damage due to negligence
Warehouse Companies
Special Type of Bailments (Common Carriers, Warehouse Companies, Hotel Operators): Can limit dollar liability under UCC Article 7
Warehouse Companies
Special Type of Bailments (Common Carriers, Warehouse Companies, Hotel Operators): Bailors may pay higher fees for increase liability limits
Warehouse Companies
Special Type of Bailments (Common Carriers, Warehouse Companies, Hotel Operators): Receipts
Warehouse Companies
Warehouse receipts are documents that describe bailed property and terms
Given by warehouse to the bailor when goods are stored
Special Type of Bailments (Common Carriers, Warehouse Companies, Hotel Operators): Negotiable Receipts
Special type of warehouse receipt that can be transferred to soeone else, giving them the right to the claim the stored goods
Example of What Type of Receipt Warehouse Receipt vs Negotiable Receipt: Example: Ossip delivers cases of corn to a warehouse. When he sells the receipt to Better Foods, they can claim the corn.
Negotiable Receipt
Special Type of Bailments (Common Carriers, Warehouse Companies, Hotel Operators): Hsitorically owners were strictly liable for bailor property
hotel owners were strictly liable for guest property
Special Type of Bailments (Common Carriers, Warehouse Companies, Hotel Operators): Must maintain a secure safe or vault
Hotel Operators
Special Type of Bailments (Common Carriers, Warehouse Companies, Hotel Operators): Must maintain proper locks and bolts on doors, transoms, and windows
Hotel Operators
Special Type of Bailments (Common Carriers, Warehouse Companies, Hotel Operators): Must maintain notices of liability limits posted conspicuously
Hotel Operators
Special Type of Bailments (Common Carriers, Warehouse Companies, Hotel Operators): liable if they refuse to accept or provide a receipt for deposited valuables.
Liability is capped at $300
Hotel Operators
