Chpt 20&21

Question 1

What is a bailor/bailee?

Answer 1

○Bailor - owner of a chattel who delivers possession of the chattel to another in bailment

○Bailee - person who takes possession of a chattel in a bailment

Question 2

Different standards of bailor/bailee relationships??

Answer 2

There are three types of bailments: those that benefit both parties, those that benefit only the bailor, and those that benefit only the bailee.

Although the burden depends on the type of bailment, the bailee must always treat the bailor’s property with a reasonable amount of care.

Question 3

What is the law of bailment?

Answer 3

Delivery: The bailor must physically deliver the property to the bailee.

Acceptance: The bailee must accept the property.

Purpose: There must be a specific purpose for which the property is delivered, with the understanding that it will be returned or disposed of according to the bailor’s instructions.

No Transfer of Ownership: The bailor retains ownership, while the bailee only has possession.

Question 4

What is “chattel”?

Answer 4

Chattel is a tangible, movable item of personal property that is not permanently attached to land or a building.

Examples include furniture, appliances, and vehicles.

Distinguishing between chattels and fixtures (items permanently attached) is crucial in property transactions and for determining ownership right

Question 5

Bailment relationship consists of what 3 elements?

Answer 5

1. Delivery of goods by bailor
2. Possession of the good by Bailee for specific purpose
3. Return of the goods to the bailor at a later time, or the disposition of the goods according to the bailor’s wishes

Question 6

What is exculpatory clause?

Answer 6

a clause in a contract that limits or exempts a party from any liability for damage to the goods.

Question 7

What is consignment sale?

Answer 7

the delivery of a chattel to another person with instructions for its sale. (for a reward)

Question 8

Pledge vs. Pawn?

Answer 8

Pledge:
the transfer of securities by a debtor to a creditor as security for the payment of a debt.

Pawn:
the transfer of possession (but not ownership) of chattels by a debtor to a creditor who is licensed to take and hold goods as security for payment of debt.

Question 9

What is license?

Answer 9

the permission granted by the bailor to the bailee to use or possess the goods for a specific purpose

Question 10

What is a lien?

Answer 10

with respect to goods, it is the right to retain the goods until payment is made.

Question 11

What is a common carrier?

Answer 11

a transportation business that specializes in the transport of goods

Question 12

Conditions/warranties of buyer/seller?

Question 13

5 rules in transfer of property

Answer 13

1. unconditional contract for sale of
   specific goods in a deliverable state, the property in the goods passes to the buyer when the contract is made
2. there is a contract for
   sale of specific goods and the seller is bound to do something to the goods for the purpose of putting
   them in a deliverable state
3. deliverable state, but the
   seller is bound to weigh, measure, test, or do some other act or thing with reference to the goods for the purpose of ascertaining the price
4. Deals with contracts for the sale of goods “on approval”
   or with return privileges
5. Applies to unascertained or future goods by description (subject matter of an agreement to sell

Question 14

What is an exculpatory clause?

Answer 14

a clause in a contract that limits or exempts a party from any liability for damage to the goods.

Question 15

What is warranty on sale?

Answer 15

minor term in contract of sale; breach of the term would allow injured party damages, but not rescission of agreement

Question 16

What is a condition in a sales contract?

Answer 16

essential term of a contract; if breached, entitles innocent party, if he or she chooses, to treat breach as discharge