1. Chapter 27 “Bailments”

2. What is a Bailment? Transfer of possession of personal property without transfer of ownership. Bailor- party who gives up possession of property. Bailee- The party who receives possession and control.

3. Three Characteristics of Bailment The Subject of Bailment Must Be Personal Property A Bailor Gives Temporary Possession and Control of Goods To Another The Parties Must Intend That the Goods Be Returned to the Bailor Fungible- There’s no difference between one unit of the goods and another.

4. What Are The Types of Bailments? Extraordinary Bailments- Bailment requiring an unusually high standard of care Ordinary Bailment- Voluntary bailments with parties other than commercial carriers and hotels. Involuntary Bailment- arises without the consent of the bailee.

5. Common carrier- one who agrees, for a fee, to transport good for another who applies, provided the goods are lawful and fit for shipment. Gratuitous Bailment- Bailment which benefits only one party. Bailment for the sole benefit of the bailee- a type of gratuitous bailment in which the bailor transfers an item to the bailee without charge and the bailee gains the service. Bailment for the sole benefit of the bailor- a type of gratuitous bailment in which the bailor transfers the item to the bailee and the bailor gains a service without charge. Mutual-benefit bailment- when consideration is given and received by both bailor and bailee. Actual bailment- the bailee receives and accepts the goods themselves.

6. Constructive bailment- when the bailee agrees and accepts a symbol of the actual personal property. Bailees duty of care- care of goods while they are in the possession of the bailee. Three levels of care: 1-Duty of Extraordinary Care-If there is damage, loss, or injury the bailee is liable. 2-Duty of Ordinary Care-The bailee will be liable only if he or she has been negligent in some fashion. 3-Duty of Minimal Care-The bailee must not waste or destroy the property.

7. How Can the Bailee’s Duty of Care Be Modified? Modification of Legislation Modification of Negotiated Contract Modification by Disclaimer disclaimer- a sign, label, or warning reducing the bailee’s duty of care.

8. What is the Nature of the Bailee’s Duty to Return the Goods? Bailee’s duty to return the property- compels the bailee to return the bailed property according to the terms of the bailment agreement. Bailee’s lien- retains possession until paid.

9. What are the Bailee’s Duties? Bailor’s duty to provide goods fit for the intended purpose- the bailor’s obligation in a mutual-benefit bailment to check for damages and inform the bailee of discoverable defects, or be liable for any resulting injuries.

10. What are the Most Common Bailments? Bailments for Transport Demurrage- Fees for use of the transportation vehicle when the bailor fails to load or unload at the agreed time. Carrier’s Lien- The right to obtain possession of the goods until the charges for transportation and incidental services are paid. Bailments for Hire Bailments for Services Bailments for Sale Consignment- where ownership remains in the manufacturer or wholesaler until the goods are sold. Sale on Approval- the prospective buyer is permitted to use the goods to determine whether he or she wants to buy them.

11. How is a Bailment Ended? When the time agreed upon by the parties has elapsed. When the agreed purpose has been accomplished. When the parties mutually agree to end it.