Personal Property

NATURE OF PERSONAL PROPERTY

Definition of Personal Property

  • Personal property is defined as:

    • Moveable Property: Property that is capable of being moved, and interests less than complete ownership in land or rights.

Categories of Personal Property

  • Personal property is divided into two main categories:

    • Tangible Personal Property: Includes items that can be seen, touched, and possessed.

    • Intangible Personal Property: Represents evidences of ownership of rights or value, which cannot be physically touched.

TANGIBLE PERSONAL PROPERTY

  • Tangible personal property specifically refers to physical items that a person can interact with directly through touch and sight.

INTANGIBLE PERSONAL PROPERTY

  • Intangible personal property includes:

    • Items such as rights, which cannot be possessed physically.

    • Example: A check made out to an individual for a monetary sum (e.g., a check to Peter Ferro for $10,000).

METHODS OF ACQUIRING PERSONAL PROPERTY

  • There are several methods through which personal property can be acquired, including:

    • Purchase: Acquiring property through a financial transaction.

    • Possession: Owning property simply by taking hold of it.

    • Will: The process in which an individual conveys their property upon their death.

    • Descent: The inheritance of property through the laws of succession.

    • Gift: A voluntary transfer of property made without expecting any consideration in return, involving:

    • Donor: The individual giving the gift.

    • Donee: The individual receiving the gift.

    • Accession: Acquiring property through the addition of personal property of another.

    • Confusion: The mixing of properties belonging to different owners resulting in loss of separability and identification.

    • Creation: Bringing new property into existence, typically relevant in intellectual property contexts.

SPECIFIC METHODS OF ACQUIRING

Purchase

  • This involves the exchange of goods for consideration (price).

Will

  • Refers to a Last Will and Testament where an owner designates how they want their property to be distributed after death.

Gift

  • A transfer of property made voluntarily and without any compensation.

Accession

  • This refers to a method of acquisition by means of adding to existing property with the property of another.

Confusion

  • This involves the mingling of goods belonging to different owners, resulting in inability to separate them. It can arise from:

    • Common Consent: Where owners agree to mix their properties.

    • Accident: Unintentional mixing of goods.

    • Willful Act of a Wrongdoer: Deliberate actions to mix properties against the owner’s knowledge.

Creation

  • Refers to the act of bringing new property into being, especially in the context of intellectual property.

INTELLECTUAL PROPERTY

Patents

  • Provide absolute title to an invention for a duration of 14-20 years.

    • During this time, the patent holder has exclusive rights to their invention.

Copyrights

  • Offer exclusive rights to authors of artistic works such as songs and books.

    • Duration: Lasts for the lifetime of the author + 70 years.

    • Exceptions: Educational uses, research, and scholarship may be exempt.

Trademarks

  • Consist of words, symbols, devices, or a combination that identifies and distinguishes the source of goods.

Trade Secrets

  • Defined as secret, economically valuable information known only to the holder, which provides a competitive advantage.

    • Characteristics:

      • Must be confidential.

      • Provide economic value to the holder due to its secrecy.

    • Different from trademarks due to varying legal and economic ramifications.

    • Misappropriation of trade secrets refers to unauthorized acquisition through breach of confidentiality or other improper means.

PROPERTY DISPOSITION

Lost and Abandoned Property

  • Abandoned Property: Discarded property with no intention of reclamation.

  • Lost Property: Unintentional left property without intention to discard.

UNIFORM DISPOSITION OF UNCLAIMED PROPERTY ACT

  • Under this act, holders of presumed abandoned personal property are required to turn over such property to the state.

BAILMENTS

Definition of Bailment

  • Bailment: Refers to the transfer of possession of personal property, conditioned on the return of the property to the bailor (the person who gives up possession).

Key Roles in Bailment

  • Bailor: The individual who transfers possession of the property.

  • Bailee: The individual who receives possession of the property with the obligation to return it.

Delivery and Acceptance of Bailments

  • Bailments are formed only when delivery of the property is completed, followed by acceptance of that delivery.

    • Types of Bailments:

    • Actual Bailment: Physical transfer of possession.

    • Constructive Bailment: The possession is given without physical transfer, recognized legally.

Types of Bailments

  • For the Sole Benefit of the Bailor: Occurs when the bailor receives no benefits; only the owner benefits.

  • For the Sole Benefit of the Bailee: Occurs when the bailee receives benefits while the bailor gets nothing.

  • Mutual Benefit Bailments: Where both parties benefit, and the bailee must exercise reasonable care over the property.

Special Mutual-Benefit Bailments:

  1. Pawn: Tangible property left as collateral for a debt.

  2. Pledge: Intangible property used as security for a debt.

CONVERSION OF BAILED PROPERTY BY THE BAILEE

Conversion

  • Conversion: Unauthorized exercise of ownership rights over property that has been bailed, constituting a tort of conversion.

    • It violates the rights of the bailor by treating the property as the bailee's own.