Personal Property and Bailments

Real Property Definition

Land and things embedded in land

Personal Property is…

Movable or intangible

Personal property consists of rights in…

…tangible, movable property, claims and debts (called choses in action), and intangible property rights

Can the title to personal property be acquired by theft?

No, the rightful owner may reclaim item(s) from the thief or the thief’s transferee

Voluntary transfer of title by the donor without consideration from the donee is considered _________

a gift

Inter Vivos Gifts Definition

ordinary gift between two living persons

Inter Vivos Gifts Intent

must be an intent to transfer title

Inter Vivos Gifts Delivery

ordinarily involves handing over gift to the done; may be a symbolic or constructive delivery

Inter Vivos Gifts Donor’s Death

if donor dies before making an effective gift, the gift fails

Gifts Causa Mortis

made with contemplation of imminent death

Gifts and Transfers to Minors

uniform acts provide for transfer to custodian to hold for minor’s benefit; gift is final and irrevocable

Conditional Gifts

condition(s) must be satisfied before gift takes place

Anatomical Gifts

may be made while alive (i.e. kidney donation) or post death; gifts may also be made by family members, but if hospital misleads the family, they have a claim of intentional infliction of emotional distress

Finding Lost Property in a Public Place

finder is not entitled to possession(s) and must give item to the manager of the public place

Lost Property Statutory Changes

some states permit finder to sell or keep the property after a stated period of time and attempt to reach owner (notice)

Wild Animal Ownership

person who acquires control over a wild animal becomes the owner

Abandoned Personal Property

occurs when owner voluntarily leaves property and does not intend to reclaim it; the first finder acquires title to property

Conversion

an intentional civil tort involving the unauthorized, wrongful, and substantial interference with another person's right to their property. It occurs when someone steals, destroys, uses without permission, or refuses to return personal property, depriving the owner of its use.

Escheat

the legal transfer of abandoned or unclaimed property—such as dormant bank accounts, uncashed checks, or stocks—to state custody after a set period of inactivity (typically 3-5 years).

Uniform Unclaimed Property Act

a model law adopted by states requiring businesses to turn over "abandoned" intangible property—such as uncashed checks, dormant bank accounts, or stocks—to the state after a set period

In cases of Escheat and Uniform Unclaimed Property Act, what rights do original owners have?

Rightful owners can reclaim their property from the state

Tenancy in Common

two or more persons own undivided interests in property

Joint Tenancy

ownership by two or more with right of survivorship; if a joint tenant dies, other(s) take ownership of the deceased’s share

Tenancy by Entirety

a transfer to both husband and wife; interest cannot be transferred to a third party

Community Property

Assets and earnings acquired by a married couple during their marriage, generally deemed owned 50/50 and subject to equal division upon divorce or death. Rules require mutual consent for selling or gifting major assets, and both spouses are typically liable for debts acquired during marriage.

Bailments Definition

When the bailor delivers tangible personal property to the bailee, who is under a duty to return it, deliver, or dispose of it as agreed

Agreement

may be express or implied; contains all the elements of a contract

Delivery and Acceptance

Bailment arises when property is delivered and accepted

Bailor’s Interest

Retention of ownership and legal title to property while temporarily transferring possession to a bailee, usually for a specific purpose like storage, repair, or transport. The bailor maintains the right to reclaim the property, expects it to be returned in good condition, and holds the right to sue for damage or conversion.

Bailee’s Interest

Possession rather than ownership. A temporary, legal, and often fiduciary right to hold, control, and sometimes work on property owned by the bailor, holding it superior to others—except the owner—for the purpose of the bailment.

Bailments for Mutual Benefit

A situation where both the bailor (owner) and bailee (possessor) derive a benefit, typically through a contract where the bailee is compensated to hold, repair, or transport property

Gratuitous Bailment

A legal relationship where personal property is transferred from a bailor to a bailee without any payment or compensation

In cases of gratuitous bailments, there is no consideration.

True

In cases of gratuitous bailments, bailees are only liable in cases of ___________________.

gross negligence

Constructive Bailment

A constructive bailment (or involuntary bailment) is a legal relationship created by law rather than by contract, imposed when a person unexpectedly comes into possession of another's personal property, such as finding lost goods. The involuntary bailee must exercise reasonable care to secure the items and return them to the rightful owner.

Does renting a space in a locker or building constitute a bailment?

No, it does not constitute a bailment

Does renting a safe deposit box or space in a bank vault constitute a bailment?

Yes it does constitute a bailment

Duties and Rights of the Bailee

Duty of care for the bailed property which differs based on terms of “benefit”

Bailee’s Lien

the bailee’s right to keep possession of property until charges are paid

In mutual benefit bailments, the bailor must make…

…reasonable investigation for defects

Liability for Defects in Bailed Property

Bailor has duty to inform bailee of known defects in bailed property

Contract Modification of Liability

Ordinary bailee may limit liability (except for willful misconduct) by agreement or contract

Breach of Duty of Care: Burden of Proof

Initially burden lies with the bailor (owner) to prove delivery of goods and damage/non-delivery, establishing a prima facie case of negligence. The burden then shifts to the bailee (possessor) to disprove negligence, showing they exercised appropriate care or that the loss occurred despite reasonable care.