The Nature of Property, Personal Property, and Bailments

Chapter 48The Nature of Property, Personal Property, and BailmentsCopyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.48-2Categories of PropertyReal Property: Land and anything permanently attached to it (fixtures)Personal Property: Property not attached to land, or movable property48-3Transfer of Personal PropertyVoluntary Transfer:Sale and Purchase: Acquiring party gives consideration (value) to seller in exchange for title to propertyGift: No consideration given to transferor (donor) by transferee (donee)Involuntary Transfer:Abandoned Property: Property that original owner has discardedLost Property: Property that true owner has unknowingly/accidentally dropped/left somewhereMislaid Property: Property owner has intentionally placed property somewhere, but has forgotten its location48-4Elements Necessary For A Valid GiftDelivery of property (from donor to donee)“Actual” delivery: Physical presentation of gift“Constructive” delivery: Delivery of item that gives access to gift/represents it (Example: Car keys)Donative intent (of donor to make an immediate gift)Acceptance of property (by donee)48-5“Inter Vivos” Gift Versus Gift “Causa Mortis”“Inter Vivos” Gift: “Between the living”; gift made by donor during his/her lifetimeGift “Causa Mortis”: Gift made in contemplation of donor’s “imminent and impending” (immediate) deathFor gift “causa mortis” to be effective, elements of delivery, donative intent and acceptance must occur before donor’s deathBailment (Definition):Special relationship in which one party (bailor) transfers possession of personalty to another party (bailee), to be used by bailee in an agreed-upon manner and for an agree-upon time period48-648-7Bailor Has Right To Expect Bailee To:Take reasonable care of bailed propertyUse bailed property only as stipulated in the bailment agreementNot alter the bailed property in any unauthorized manner; andReturn bailed property in good condition at end of bailment48-8Duties of BailorBailor must provide bailee with any agreed-upon compensation for bailmentBailor must reimburse bailee for any necessary costs incurred by bailee during bailment48-9Documents of TitleBill of Lading: Document issued by party engaged in business of transporting goods that verifies receipt of goods for shipmentWarehouse Receipt: Receipt issued by party who is engaged in business of storing goods for compensation48-10Special BailmentsCommon Carriers (licensed to provide transportation services to public)Innkeepers (regularly in business of making lodging available to public)