Ch. 48- The Nature of Property, Personal Property, and Bailments

real property

land and anything permanently attached to land (fixtures)

personal property

property not attached to land, or movable property

tangible personal property

physical objects

intangible personal property

property that not physical

ex. stocks, bank accounts, NFTs, intellectual property rights

voluntary transfer: 2 types

sale and purchase

gift

sale and purchase

buyer gives consideration (something of value) to seller in exchange for title to property

gift

no consideration given to transferor (donor) by transferee (donee) for title to property

involuntary transfer: 3 types

abandoned property

lost property

mislaid property

abandoned property

property that original owner has intentionally discarded

lost property

property that original owner has unknowingly/accidentally dropped/left somewhere

mislaid property

property that original owner has intentionally placed somewhere but has forgotten its location

general finders rules of involuntary transfer

- the finder of lost or mislaid property acquires title to the property against all except the true owner

- the finder of abandoned property gets title to it

exception to general finders rules: involuntary transfer

some state laws require the finder to place an ad in a newspaper to give true owner responsible notice lost/mislaid property has been found and/or left with local police before the finder can acquire title to the property

elements necessary for a valid gift

1. delivery

2. donative intent

3. acceptance

2 types of delivery

actual delivery

constructive delivery

delivery

delivery of property from donor to donee

actual delivery

physical presentation of gift

constructive delivery

delivery of item that gives access to gift (ex. car keys)

donative intent

donative intent of donor to make an immediate gift

acceptance

acceptance of property by donee

acceptance is generally ________ unless the property is...

presumed

property is explicitly rejected by the donee

inter vivos gift

"Between the living"; gift made by donor during his/her lifetime

Gift Causa Mortis

gift made in contemplation of donor's imminent and impending (immediate) death

how to make a gift causa mortis effective

all the required elements of delivery, donative intent, and acceptance, must occur before the donor's death

the donor may revoke a causa mortis gift...

at any time before his or her death, and the gift is automatically revoked if the donor recovers (ex. does not die immediately

bailment

special relationship where one party (bailor) transfers possession of property to another party (bailee), to be used or held by bailee in an agreed-upon manner, for an agreed-upon time period

bailor has right to expect bailee to

Take reasonable care of bailed property

Use bailed property only as stipulated in the bailment agreement

Not alter the bailed property in any unauthorized manner; and

Return bailed property in good condition at end of bailment

duties of bailor

- Must provide bailee with any agreed-upon compensation for bailment

- Must reimburse bailee for any necessary costs incurred by bailee during bailment

rights of the bailee

- To possess bailed property during term of the bailment

- To use property in a manner consistent with terms and purpose of the bailment

- To receive compensation for bailment unless bailment is gratuitous

- To retain bailed property until payment is received

duties of the bailee

- Must take reasonable care of bailed property

- Must use bailed property only as stipulated in bailment agreement

- Must not alter bailed property in any unauthorized manner

- Must return bailed property in good condition at end of the bailment