Personal Property

Notes from the in class slideshow

Property

Refers to a thing that may be owned OR a legal right or interest that allows a person to exercise dominion and control over something that may be owned or possessed.

Bundle of Rights

Property ownership consists of legally recognized rights, including the rights to use, sell, transfer, exclude others from, and destroy property.

Personal Property

All property that is not real property; generally movable and transferable.

Real Property

Land and things permanently attached to the land, such as buildings.

Fixture

Personal property that is intended to be permanently attached to land and becomes real property.

Tangible Personal Property

Personal property that has a physical existence, such as cars, furniture, clothing, animals, or trash at the curb.

Intangible Personal Property

Personal property that has no physical existence, such as stocks, bonds, patents, copyrights, or trademarks.

Production

A method of acquiring ownership; a person generally owns property they create unless someone else paid for its creation.

Purchase

The most common way of acquiring ownership of personal property.

Inheritance / Will

Ownership of personal property transferred upon death through a will or state inheritance law.

Confusion

Occurs when goods owned by different people are so intermingled they cannot be separated, resulting in shared ownership.

Accession

Increasing the value of property by adding labor, materials, or both; original owner remains owner, but improver may seek compensation.

Abandoned Property

Property intentionally placed out of the owner’s possession with intent to give up ownership.

Finder of Abandoned Property

The finder may claim ownership.

Lost Property

Property involuntarily placed somewhere by the owner with no intent to part with possession.

Finder of Lost Property

Does not gain ownership but has greater rights than anyone except the true owner and must safeguard the property.

Mislaid Property

Property voluntarily placed somewhere by the owner and then forgotten.

Finder of Mislaid Property

Has no ownership rights; must return the property to the true owner.

Conversion

Knowingly exercising control over another’s property and refusing to return it to the rightful owner.

Gift

A voluntary transfer of property from a donor to a donee without consideration.

Elements of a Valid Gift

Donative intent, delivery, and acceptance are all required.

Delivery of a Gift

May be actual, constructive, or symbolic (example: giving keys).

Inter Vivos Gift

A gift made during the donor’s lifetime.

Gift Causa Mortis

A conditional gift made in contemplation of death and automatically revoked if conditions fail.

Conditional Gift

A gift that is not complete unless a required condition is satisfied.

Engagement Ring

An example of a conditional gift conditioned on marriage.

Broken Engagement Rule

When marriage does not occur, the engagement ring must be returned regardless of fault.

Bailment

A legal relationship created when personal property is transferred with exclusive possession and control to another who must return it.

Bailor

The owner or person with the right to possess the property.

Bailee

The person who knowingly accepts possession of property and agrees to return it.

Requirements to Create a Bailment

Delivery of exclusive possession, acceptance, and understanding that property must be returned or disposed of as directed.

Involuntary Bailment

A bailment created without intent, such as when someone finds lost or mislaid property.

Bailment for Sole Benefit of Bailor

Bailee owes a slight duty of care.

Bailment for Sole Benefit of Bailee

Bailee owes a high duty of care.

Mutual Benefit Bailment

Bailee owes ordinary or reasonable care.

Bailee’s Duties

Take care of the property and return it in the same or similar condition.

Bailee Liability

Failure to return property may result in damages or conversion.

Bailor’s Implied Warranty

Bailor impliedly warrants that the bailed property is safe.

Bailor Liability (Mutual Benefit Bailment)

Liable for defects known or that should have been discovered with reasonable inspection.

Professional Bailee

A bailee such as an innkeeper or common carrier who owes a higher duty of care.

Common Carrier

A near-absolute insurer of goods being transported.

Innkeeper

A near-absolute insurer of guest property.

Exceptions to Carrier and Innkeeper Liability

Act of God, public enemy, government action, fault of owner/guest, or nature of goods.

Document of Title

A document that identifies ownership of goods.

Bill of Lading

A document of title issued by a carrier.

Warehouse Receipt

A document of title issued by a warehouse.

Negotiable Document of Title

A document stating goods are deliverable to bearer or to order of a named person.

Effect of Negotiable Document of Title

Transfers title to both the document and the goods.

Gyamfoah v. EG&G Dynatrend

Failure to redeliver property upon demand creates a rebuttable presumption of conversion.

Lindh v. Surman

Engagement rings are conditional gifts that must be returned if marriage does not occur.

Grande v. Jennings

Hidden money in a home was mislaid property, not abandoned.

Weissman v. City of New York

A bailment was created when a facility took exclusive control of property; vague exculpatory clauses are unenforceable.

Practice: Jake borrows Jane’s car and dents it. What must he do?

Return the car in the same or similar condition or pay damages.

Practice: Engagement ring given, engagement broken. Who keeps it?

The ring must be returned to the donor.

True or False: A person who finds abandoned property may claim ownership.

True.

True or False: A conditional gift is a completed gift.

False.