Chapter 48 The Nature of Property, Personal Property, and Bailments Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Categories of Property Real Property: Land and anything permanently attached to it (fixtures) Real Property: Land and anything permanently attached to it (fixtures) Personal Property: Property not attached to land, or movable property Personal Property: Property not attached to land, or movable property 48-2

Transfer of Personal Property Voluntary Transfer: Voluntary Transfer: Sale and Purchase: Acquiring party gives consideration (value) to seller in exchange for title to property Sale and Purchase: Acquiring party gives consideration (value) to seller in exchange for title to property Gift: No consideration given to transferor (donor) by transferee (donee) Gift: No consideration given to transferor (donor) by transferee (donee) Involuntary Transfer: Involuntary Transfer: Abandoned Property: Property that original owner has discarded Abandoned Property: Property that original owner has discarded Lost Property: Property that true owner has unknowingly/accidentally dropped/left somewhere Lost Property: Property that true owner has unknowingly/accidentally dropped/left somewhere Mislaid Property: Property owner has intentionally placed property somewhere, but has forgotten its location Mislaid Property: Property owner has intentionally placed property somewhere, but has forgotten its location 48-3

Elements Necessary For A Valid Gift Delivery of property (from donor to donee) Delivery of property (from donor to donee) “Actual” delivery: Physical presentation of gift “Actual” delivery: Physical presentation of gift “Constructive” delivery: Delivery of item that gives access to gift/represents it (Example: Car keys) “Constructive” delivery: Delivery of item that gives access to gift/represents it (Example: Car keys) Donative intent (of donor to make an immediate gift) Donative intent (of donor to make an immediate gift) Acceptance of property (by donee) Acceptance of property (by donee) 48-4

“Inter Vivos” Gift Versus Gift “Causa Mortis” “Inter Vivos” Gift: “Between the living”; gift made by donor during his/her lifetime “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 Gift “Causa Mortis”: Gift made in contemplation of donor’s “imminent and impending” (immediate) death For gift “causa mortis” to be effective, elements of delivery, donative intent and acceptance must occur before donor’s death For gift “causa mortis” to be effective, elements of delivery, donative intent and acceptance must occur before donor’s death 48-5

Bailment (Definition): Special relationship in which one party (bailor) transfers possession of personalty to another party (bailee), to be used by bailee in an agreed-upon manner and for an agree-upon time period 48-6

Bailor Has Right To Expect Bailee To: Take reasonable care of bailed property Take reasonable care of bailed property Use bailed property only as stipulated in the bailment agreement Use bailed property only as stipulated in the bailment agreement Not alter the bailed property in any unauthorized manner; and Not alter the bailed property in any unauthorized manner; and Return bailed property in good condition at end of bailment Return bailed property in good condition at end of bailment 48-7

Duties of Bailor Bailor must provide bailee with any agreed-upon compensation for bailment Bailor must provide bailee with any agreed-upon compensation for bailment Bailor must reimburse bailee for any necessary costs incurred by bailee during bailment Bailor must reimburse bailee for any necessary costs incurred by bailee during bailment 48-8

Documents of Title Bill of Lading: Document issued by party engaged in business of transporting goods that verifies receipt of goods for shipment Bill of Lading: Document issued by party engaged in business of transporting goods that verifies receipt of goods for shipment Warehouse Receipt: Receipt issued by party who is engaged in business of storing goods for compensation Warehouse Receipt: Receipt issued by party who is engaged in business of storing goods for compensation 48-9

Special Bailments Common Carriers (licensed to provide transportation services to public) Common Carriers (licensed to provide transportation services to public) Innkeepers (regularly in business of making lodging available to public) Innkeepers (regularly in business of making lodging available to public) 48-10