Bailments Flashcards
(20 cards)
What is a bailment?
Occurs when bailor delivers possession of property to bailee under agreement that property will be returned to bailor or accounted for when bailment’s purpose is done.
What is the key element of a bailment?
Mutual Assent
What are the two primary duties of a bailee?
- Duty to exercise care in safeguarding property
- Return or account for property
What is a gratuitous bailment?
- NO consideration exchanged
- Benefits one party
What is the bailee’s duty in a gratuitous bailment if they benefit?
Extraordinary care.
What is the bailee’s duty in a gratuitous bailment if the bailor benefits?
Gross negligence.
What is a commercial bailment?
Mutual benefit (bailments for hire).
What is the bailee’s duty in a commercial bailment?
Ordinary care.
What is the legal presumption regarding negligence in bailments?
Negligence if bailee fails to return property or it is damaged.
What must a bailee prove to escape liability for loss or damage?
- Loss/damage was beyond their control
- Consistent with due care
What was the outcome of Bridge Tower v. Meridian Computer?
BT’s hard drive data was erased due to Meridian’s mishandling. Meridian liable because they failed to rebut the presumption of negligence.
What is one way businesses can escape bailment duties?
Contracting around by adding disclaimers.
What is the role of legislation in bailments?
Statutes can prevent certain situations from becoming bailments.
What is a bona fide purchaser (BFP)?
A person who:
* N – No Notice: Purchased without notice of defect in seller’s title
* G – Good faith: Purchases property in good faith
* V – Value: Provided value in the transaction
“No Good Villains”
What is the Nemo Dat Principle?
Cannot transfer ownership of something they don’t own.
What is the BFP doctrine exception?
Allows someone who purchased an item in good faith to keep ownership even if the seller’s title is defective.
What is a void title?
No rights to good, e.g., stolen property.
What is a voidable title?
Can potentially be converted to good title through BFP; goods conveyed through fraud can pass good title but are voidable.
What is a good title?
Legal/valid title.
What was the outcome of Charles Evans BMW v. Williams?
Evans BMW acquired good title despite Hodge’s fraudulent actions.
