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BAILMENTS.  Bailment = transfer of possession without the transfer of ownership  Bailor = party who gives up possession of the property  Bailee = party.

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Presentation on theme: "BAILMENTS.  Bailment = transfer of possession without the transfer of ownership  Bailor = party who gives up possession of the property  Bailee = party."— Presentation transcript:

1 BAILMENTS

2  Bailment = transfer of possession without the transfer of ownership  Bailor = party who gives up possession of the property  Bailee = party who accepts possession and control

3  You lend your pen to a friend  Not a sale or a gift, because your friend must return the pen to you. It’s a bailment.  You get a movie from RedBox

4  1. Subject is personal property  2. A transfer of temporary possession  3. A transfer of temporary control  4. Both parties intend return of the goods

5  Subject must be personal property  Real property can’t be bailed

6  Usually property is bailed by the person who has title to it.  Property may be bailed by any person in possession (owner’s agent or employee, a finder, or even a thief)

7  2 ways to transfer possession and control of goods:  Actual bailments = bailees receive and accept the goods themselves.  Example: when you rent a car, get behind the steering wheel and drive off, you receive and accept the car in bailment.  Constructive bailments = bailee receives and accepts a symbol of the personal property  Example: If ask to borrow your neighbor’s truck and receive and accept the keys

8  Both possession and control of the goods must shift from bailor to bailee for bailment to arise.  Example: cars left in parking lots  1. Car owner parks the car in a lot but keeps the keys. Owner can later drive the car away without permission of an attendant. Owner gave up possession but not control. No bailment.  2. If attendant takes possession of the car and gives the owner a claim check that must be turned in to get the car back, there is a bailment.

9  It is possible for a person to have temporary control of another’s personal property yet not have a bailment. This occurs with custody.  Owners do not give complete control, they just authorize someone to watch over the goods, but the owner retains control.

10  Both bailor and bailee must intend that the goods be returned.  Usually the bailee must return the identical goods, but they can be modified as a result of repairs, processing, or aging.  Some goods fungible. Fungible = no difference between one unit of the goods and another.

11  Bailment ends when the time agreed upon by the parties has elapsed, when the agreed purpose has been achieved, or when the parties mutually agree to end it.

12  Divide into four groups of four people per group.  Create a spider map to identify the four characteristics that must be present for bailments to exist.  Then brainstorm examples of bailments and create a second drawing to depict the bailment attributes of the example.

13  Most legal problems with bailments arise when something happens to the goods while they are in the possession of the bailee.

14  Extraordinary care – bailee will be strictly liable for any damage, loss, or injury to the goods.  Example: goods bailed at common carriers and hotels  Example: You lend your calculator to a classmate without charge.

15  Ordinary care – bailee will be liable if negligent in some way.  Example: left car at a repair shop and paid $29.99 for an oil change.

16  Minimal Care – bailee must not ignore, waste, or destroy the bailed property.  Example: neighbor’s trash can blows onto your property. For valuable property, the bailee must make a minimal effort to identify the owner.  Example: When mail is delivered to the wrong address.  Example: Your parents agree to care for a neighbor’s house plants without charge while the neighbor is on vacation.

17  You borrow your neighbor’s sailboat for the afternoon. While sailing, a strong wind rips the sail. 1. What type of bailment was created? 2. How does that affect your liability for the damage to the boat?


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