in same condition what is a bailment? transfer of .... duty to return goods!bailee must return goods...
TRANSCRIPT
What is a Bailment?
! Subject is personal property
! Involves a temporary transfer ofpossession
! Involves a temporary transfer of control
! Parties intend the goods to be returned
bailor
bailee
Transfer of Possession & Control
! Actual Bailment – Bailee acceptsand receives goods themselves.
! Constructive Bailment – Baileeaccepts a symbol of the personalproperty in lieu of property itself.
! Your car parked in a parking garage, the keysare in your pocket.
! Your car left with a valet.
! House sitting for a friend.
! A car you rented on Spring Break.
! A pen you borrow from a friend.
! A security guard on night duty at an art gallery.! Custody – temporary control under owner’s direction
! A necklace your friend loans you to wear atprom.
Which of these transfer bothPossession and Control?
Parties Must Intend Goods be Returned
! In same condition (with reasonable aging, usage, etc.)
! Example: Rental car is expected to have additional mileage.
! In improved or modified condition
! Example: repairs or cleaning
! Exceptions:
! Goods may be returned to another party designated by bailor.
! Fungible goods (one unit of goods is the same as the next):only need to return same quantity not exact same goods.
! Example: Rental truck returned to another city, with a full tank ofgas.
Termination of Bailment
! Agreed upon time is up
! Purpose has been achieved
! Parties mutually agree to end
Also
! Death, insanity or bankruptcy of one party
! Except in case of contracted time period,duties are transferred to estate.
Common Examples of Bailments
Bailments for Transport (shipping)
1. Enforce reasonable rules for conduct of business
2. Charge a reasonable rate
3. Charge demurrage (fee for vehicle when not in use)
4. Enforce a carrier’s lien (keep goods until paid)
Bailments for Hire (rentals)
Bailments for Services (repairs)
Who’s responsible for damaged good?
Bailments for Sale (consignment)
4 Characteristics of Bailments
Personal Property
Temporary Transfer of Possession
Temporary Transfer of Control
Intend goods be returned
Why do we care?
Many legal disputes arise whensomething happens to property
before it is returned.
Levels of Expected Care
! Extraordinary Care
! Bailee is strictly liable for any damage or loss
! Expected of common carriers
! Only exceptions are acts of God, war or police
! Examples: hotels, truck lines, UPS, air freight,and gratuitous bailments (bailee is solebeneficiary)
! Borrowing a friends calculator for no charge
Levels of Expected Care
! Ordinary Care
! Liable only if neglect or carelessness
! Mutual benefit to bailor and bailee: bothreceive consideration
! Example: Leave tennis racquet to berestrung for $20.
Levels of Expected Care
! Minimal Care! Bailee must not waste, ignore or destroy
property
! When bailor is sole beneficiary! Example: Care for neighbors house
plants for free
! Involuntary Bailments! Example: row boat washes ashore
! However, if valuable, must make effortto identify owner
What Care Would Be Expected?
! Library Book
! Find a wallet with $2
! Find a wallet with$200
! Leave bike at repairshop
! Furniture on amoving van
! Rental car
! Borrow your neighbor’scar
! Leave your coat at afriend’s house
! Rent a video
! Dog sit for a friend
! Blood left at a bloodbank for future personaluse
Levels of Expected Care
Minimal care:
Involuntary Bailments; Bailor Benefits
Found items, taking care of something for free
Ordinary care:
Mutual Benefit Bailments
Both parties Benefit, example: Rentals
Extraordinary care:
Common Carriers (if no waivers/disclaimers)
Gratuitous Bailments: When Bailee benefits
for example: Borrowing something
Modifications to Level of Care
! By Legislation
! Limited liability laws for airlines responsibility forluggage.
! By Contract
! Parties can determine what kind of care is required
! By Disclaimer
! Sign, label or warning reducing the duty of care.
! Bailor must be aware of disclaimer prior tobailment.
Duty to Return Goods
! Bailee must return goods according tothe agreement
! If bailee is entitled to payment and notpaid – may exercise a bailee’s lien(keep goods until payment)
! If payment is unreasonably delayed,bailee may sell property to recover fee.
Liability Issues
! Mutual Benefit Bailments! Bailor must provide goods fit for intended purpose
! Bailor must inform bailee of any defects
! Bailee cannot collect damages if they were aware of the defect
! Bailments for sole benefit of bailor! Bailor must inform bailee of any defects or dangers
! Bailee may not use bailed items unless necessary to preservethem
! Bailments for sole benefit of bailee! Bailor must inform bailee of any defects
! Bailee may use goods only as agreed.