Bailment “the transfer of possession, but not the title of personal property by one party to another, under agreement”

Parties Involved Bailor: “the party who gives up possession, but not title, of property in a bailment” Bailee: “the party who acquires possession but not title of personal property in a bailment”

Conditions of Bailment 1) parties must agree that the same property is to be returned to bailor, or accounted for as directed, although possibly altered in form 2) there must exist both a delivery and acceptance of property

Duties Duty of Bailor: Duty of Bailee: tort of conversion

Types of Bailment 1) Sole Benefit of Bailor: possession of personal property is transferred to another for purposes that will benefit only the bailor 2) Sole Benefit of Bailee: transactions in which the possession of personal property is transferred for purposes that will benefit only the bailee

Types of Bailment (cont’d) 3) Mutual Bailment: when personal property is transferred to a bailee with the intent that both parties will benefit Exceptions: a) where property is taken from bailee under valid legal process b) when a person to whom property is delivered has better entitlement to possession than the bailor

Types of Bailment (cont’d) 4) Involuntary Bailment: property comes into possession unintentionally or by an “act of God”. Mutuum: loan to another with expectation that goods will be used up and replaced with like goods of equal amount (not a bailment)

Carriers Private Carriers: “those who transport only in particular instances and only for those they chose to contract with e.g. FH vehicles and livery Common Carriers: “any carrier required by law to convey passengers or frieng without refusal if the approved fare or charge is paid e.g. airline, train etc.

Common Carrier Terms Bill of Lading: “the contract existing between the consignor and the carrier” Consignor: “one who ships goods by common carrier” Consignee: “one to whom goods are shipped by common carrier

Agency “the relationship that exists between a person identified as a principal and another by virtue of which the latter may make contracts with third persons on behalf of the principal

Parties Involved Agent: “party appointed by the principal to enter into a contract with a third party on behalf of the principal” Principal: “party who appoints a second party to serve as an agent” Third Party Principal authorizes the agent to deal with a third party.

Agency (cont’d) Principal must indicate that the agent is to act for and under the control of the principal. Agent must consent to act on behalf or and subject to the control of the principal. Principal’s authorization to the agent can be express or implied. Fiduciary relationship. Contract is between the principal and third party.

Principal-Agent Relationship Agent has the authority to represent the principal. Principal is liable for the agent’s acts. Agent’s duties require judgment, discretion and decision-making. Key issue is degree of control. Principal requirements: Agent requirements: Agents are responsible for “tortuous” activity. Agents generally cannot appoint sub-agents.

Types of Agency Agency by Appointment: POA Agency by Ratification Agency by Conduct Agency by Operation of Law

Types of Agents Universal General: “one who is authorized to execute the principal’s business of a particular kind, or all the principal’s business at a particular place” Special: “one authorized by the principal to execute specific acts” Borrowed Servant

Agent’s Duties Obedience to instructions. Good faith/loyalty. Skill, judgment, and discretion. Obligation to account. Relay information.

Principal’s Duties Appropriate compensation. Reimbursement for expenses. Indemnification for losses. Right of lien against the agent. Protection from injury.

Third Party’s Obligations Contractual liability to the principal. Contractual liability to the agent. Tort liability.

Relationships Employee/Employer: employee is the “person hired to perform work and who is obligated both as to the work to be done and as to the manner in which it is to be done” Employer is the “party who employs employees to do certain work”. Partnerships: “voluntary association of two or more people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit”

Relationships (cont’d) Independent Contractor: “one who contracts to perform certain tasks for a set fee, but who is independent of the control of the contracting party as to means by which the contract is executed, except for specifications established in the contract”

Termination of Agency Agreement and Performance Mutual Agreement Discharge by Principal Operation of Law: death/insanity of agent or principal bankruptcy destruction of subject matter