Chapter 1, Section 2 Flashcards

Bailments, Possession, and Standards of Care (26 cards)

1
Q

Define Bailment

A

A bailment is the rightful possession of personal property by someone who is not the true owner (bailee), based on an express or implied agreement to return the item to the owner (bailor).

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2
Q

What are the 4 elements of a bailment?

A
  1. Delivery of possession of the good from bailor to bailee.
  2. Intent by the bailee to possess the item (not mere custody).
  3. Control over the item by the bailee.
  4. Agreement (express or implied) to return the item.
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3
Q

Why don’t fungible goods typically create a bailment?

A

Because bailment requires returning the same specific item, but fungible goods (like cash or grain) are interchangeable. Extra Credit: Without agreement to keep them separate, it’s a debtor-creditor relationship, not a bailment.

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4
Q

Why is mere custody not considered a bailment?

A

Bailment requires possession with intent to control the item on the bailor’s behalf. Mere custody, just temporary physical control without intent to possess, doesn’t meet that requirement.

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5
Q

Why does a park-and-lock lot usually not create a bailment?

A

If you park yourself, keep your keys, and the lot operator never takes possession, you retain control. Without delivery of possession to the lot operator, there’s no bailment.

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6
Q

Possession for bailment purposes requires what two elements?

A
  1. Intent to possess (awareness and acceptance)
  2. Control, either actual (physical) or constructive (e.g., holding keys)
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7
Q

Does giving your coat to a restaurant coat check create a bailment?

A

Yes – Bailment. You deliver possession of the coat to the coat check, who accepts it and is obligated to return it. All elements of bailment (delivery, acceptance, duty to return) are met.

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8
Q

Is there a bailment if someone slips their watch into your pocket without your knowledge?

A

No – Bailment. Bailment requires the bailee’s knowledge and acceptance of possession. Without knowing or agreeing, there’s no delivery or acceptance, so no bailment.

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9
Q

What is constructive possession, and how does having a car’s keys illustrate it?

A

Constructive possession means you control an item without physically holding it. Having a car’s keys gives you power to access and control the car, so you have constructive possession even if you’re not in the vehicle.

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10
Q

Explain the doctrine of Accession.

A

A legal principle where ownership of property can expand or transfer when someone, in good faith, significantly improves another’s property by adding labor or combining it with other materials.

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11
Q

What are the elements of the doctrine of accession?

A
  1. Good faith.
  2. Significant increase in value.
  3. Compensation often owed to the original owner for the value of their property.
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12
Q

Why is good faith important in accession?

A

Without good faith, the improver can’t claim ownership, bad-faith improvers must return the property or its value and may owe damages.

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13
Q

Give an example where the improver might gain ownership under accession.

A

A carpenter buys wood in good faith, thinking he owns it, and builds an expensive custom cabinet that greatly exceeds the value of the wood, the court might award the cabinet to the carpenter, requiring payment for the wood’s original value.

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14
Q

When would the original owner keep the improved property pertaining to the doctrine of accession?

A

If the improvement is small or easily separated, e.g., someone dyes another’s cloth a different color, the cloth’s owner usually keeps it and may owe only the value of the labor.

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15
Q

Under accession, what determines who owns the combined product if two items are joined?

A

The principal item (of greater value or identity) determines ownership of the finished product; the owner of the principal keeps it and pays for the accessory if added in good faith.

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16
Q

Who benefits in a bailment solely for the bailor, and what is the bailee’s liability and standard of care?

A

Benefit: Bailor only
Bailee liability: Gross negligence
Standard of care: Slight care

17
Q

Who benefits in a mutual benefit bailment, and what is the bailee’s liability and standard of care?

A

Benefit: Both parties
Bailee liability: Ordinary negligence
Standard of care: Ordinary care

18
Q

Who benefits in a bailment solely for the bailee, and what is the bailee’s liability and standard of care?

A

Benefit: Bailee only
Bailee liability: Slight negligence
Standard of care: Great care

19
Q

What is the bailee’s liability and duty in case of misdelivery?

A

Bailee liability: Strict liability
Standard of care: Must return the item to the correct person

20
Q

What is the modern approach to the common law classifications of bailments and standards of care?

A

Many jurisdictions reject distinctions and apply a unified standard of ordinary care, except for misdelivery, which often retains strict liability.

21
Q

What do statutory limits on bailee liability do?

A

They cap how much a bailee (like a hotel) can be liable for, e.g., a statute might limit hotel liability to $1,000 for guest property.

22
Q

Can private agreements reduce bailee liability below statutory minimums?

A

No, private agreements can’t lower liability below statutory limits set by law.

23
Q

What happens if someone has a contract that tries to limit liability below the statutory cap?

A

The contract provision is invalid; for example, if the statute caps liability at $1,000, the contract can’t lower it to $500 by agreement.

24
Q

What does the doctrine of relativity of title mean for a bailee?

A

A bailee has superior rights to the bailed goods against third parties but inferior rights to the true owner.

25
How does relativity of title apply if a valet gives a car to a stranger?
The valet (bailee) can sue the stranger for wrongful taking because the bailee’s possessory rights are superior to any third party’s.
26
Can the true owner still recover the property if a third party wrongfully takes it?
Yes, the owner has the ultimate right and can sue both the bailee (for misdelivery) and the stranger; “first in time, first in right” governs ownership claims.