1. Real and Personal Property Objective 09.02 Compare the legal rights of acquisition, transferal and renting/leasing of real or personal property. BAILMENTS

2. Bailment An agreement created by the temporary delivery of personal property by the owner to someone who is not the owner for a specific purpose. Both parties agree that the property will be returned to the bailor. Bailee - has in their temporary possession property that belongs to someone else. Bailor – owner of property who gives up possession to someone else temporarily.

3. Examples of Bailments Leather jacket left at a dry cleaners Vehicle delivered to parking valet Goods transported by common carrier Truck taken to dealership for service check Diamond ring taken to jeweler for cleaning or repair Leaving your clothes in dressing room while trying on new sweater Goods delivered to a consignment shop

4. Mutual Benefit Bailments Invokes the duty of ordinary care on the bailee Results from a contract (for service, repair, storage, rental) with consideration exchanged Both bailor and bailee receive benefit A pledge as security for a loan is also a mutual benefit bailment Most bailments are mutual benefit

5. Bailment by Necessity Implied by law, a customer must give up possession of property. –Example: When you rent skates and leave your own shoes while you skate –Example: When you leave your clothes temporarily in the dressing room while you try on a new outfit

6. Other Bailments Gratuitous Bailment –Free of charge (lend something to a friend). –Only one party benefits Extraordinary bailment –A common carrier or hotel is strictly liable for damage to bailed goods

7. Rights and Duties of Bailee Rights: –To hold a Mechanic’s Lien -the right to retain property of another, if not paid for service rendered –To expect payment for services rendered Duties: –Of reasonable care and protection of goods while in custody of bailee –To comply with terms of bailment

8. Rights and Duties of Bailor Rights –to have goods protected –to receive service as agreed upon –to have goods returned in timely manner Duties –to pay for service provided –to warn of dangers or special care required –to pick up goods in a reasonable time

9. Tortious Bailee What is a tortious bailee? –A party who wrongfully retains lost property or stolen property –A party who wrongfully uses a bailed article for a purpose other than that agreed upon by the parties Examples: –Student who finds necklace and knows who it belongs to but does not return it to the rightful owner –Parking valet who takes your hot car on a joy ride –Dry cleaner’s employee who wears your leather jacket