Personal Property

Question 1

Bailor

Answer 1

The property owner

Question 2

Bailee

Answer 2

The person holding the property

Question 3

What is required to establish a bailment?

Answer 3

The bailor must (1) deliver physical possession and control of personal property to the bailee, (2) who must knowingly accept that possession with (3) the intention to care for it and return it as agreed upon.

Question 4

Gratuitous Bailment

Answer 4

Where the bailee holds the property for the sole benefit of the owner.

Question 5

What is the standard of care for gratuitous bailments?

Answer 5

The bailee is held to a standard of only slight diligence and must avoid gross negligence.

Question 6

Mutually Beneficial Bailment

Answer 6

Where the bailment is for the mutual benefit of the bailor and bailee.

Question 7

What is required in mutually beneficial bailments?

Answer 7

Ordinary due care is required, and the bailee must avoid negligence.

Question 8

Bailment for Sole Benefit of Bailee

Answer 8

When a person borrows another’s personal property.

Question 9

What duty of care does a bailee have when borrowing personal property?

Answer 9

The bailee is held to the greatest duty of care, where even slight negligence may give rise to an action for damages.

Question 10

Can a bailee disclaim liability?

Answer 10

Generally, no. A limitation by special contract requires a showing that the bailor had notice of the terms and assented to them.

Question 11

Gift

Answer 11

A voluntary transfer of property by one person to another without any consideration.

Absolute title passes at completion.

Question 12

Donor

Answer 12

The gift giver

Question 13

Donee

Answer 13

The recipient of the gift

Question 14

What is required for a valid gift?

Answer 14

(1) Donative intent
(2) Delivery (actual or constructive)
(3) Acceptance.

Question 15

Inter Vivos Gift

Answer 15

The donor parts with control during their life, intending that title passes immediately and irrevocably to the donee.

Question 16

Third Party Intermediary of Gift

Answer 16

Presumed to be acting for the donee, unless the facts show otherwise.

Question 17

Who has the burden of proof in claiming a gift?

Answer 17

The burden rests upon the party claiming the gift to prove the essential elements by clear and convincing evidence.

Question 18

Exception to burden of proof regarding gift

Answer 18

A conveyance from a parent to child is often presumed to be a gift, shifting the burden of proof.

Question 19

Finding or Conversion

Answer 19

One who is not first in the chain of title, and who obtains possession by a finding or conversion rather than by gift or sale, has a right to possession that is inferior to the prior possessor’s but superior to subsequent finders or converters of the property.

Question 20

Finder

Answer 20

A finder is one who discovers lost or mislaid property and asserts possession over it with intent to control the property. They do not acquire title to the property, but only a possessory interest.

Question 21

Lost Property

Answer 21

Property which the owner has parted with accidentally and involuntarily through negligence or inadvertence.

Question 22

What rights does the Finder of Lost Property acquire?

Answer 22

A right of possession superior to all others except the prior owner.

Question 23

Do trespassers acquire possessory rights in property found on private property?

Answer 23

No, the owner of the place where the property was found (the locus in quo) assumes the right of possession.

Question 24

Do non-trespassors acquire possessory rights in property found on private property?

Answer 24

Yes, as the finder.

Unless it is a highly private locus (generally not open to the public). In that case, the owner of the locus, not the finder, acquires possessory rights.

Question 25

Mislaid Property

Answer 25

Property which the owner has voluntarily and intentionally placed somewhere and then forgotten.

Question 26

Who acquires the right of possession of Mislaid Property?

Answer 26

The owner of the site obtains the right to possession until the property is claimed by the true owner. The finder of mislaid property acquires no right of possession.

Question 27

Treasure Trove (common law)

Answer 27

Gold, silver, jewels, or money hidden for safekeeping by an unknown owner - title goes to the finder as against everyone but the true owner.

Question 28

Treasure Trove (modern trend)

Answer 28

Title passes to the owner of the land upon which the treasure was found.

Question 29

Buried Chattel

Answer 29

Things embedded in the soil which cannot be classified as either treasure trove or lost property. They belong to the owner of the land, not the finder.

Question 30

Duty of Finders

Answer 30

If a finder knows or has reasonable means of discovering the identity of the true owner, they must take steps to notify the true owner that the property has been found.

Question 31

Employee Finder

Answer 31

If an employee finds an item in the course of his employment, the employer has the right to possess the item. And if the chattel is found on the employer's property, the employee has a duty to turn it over to the employee.

Question 32

UCC-Entrustment

Answer 32

Entrusting goods to a merchant who deals in goods of the kind gives the merchant power to transfer all rights of the entruster to a buyer in the ordinary course of business. ## Footnote Merchant still liable via breach, negligence, conversion, etc.

Question 33

Buyer in the Ordinary Course of Business

Answer 33

A person who buys in good faith and without knowledge that the sale violates the ownership rights of a third party.

Question 34

Can the true owner reclaim goods from a bona fide purchaser?

Answer 34

Yes, the true owner's ownership is superior. ## Footnote Unless - UCC entrustment