Personal Property Law—Chapter 19

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Personal Property

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Personal property is anything you own that is not real estate (land and/or buildings)

Personal Property Law—Chapter 19

1. Gifts2. Bailments

a) Mutual Benefit bailmentb) Gratuitous bailment• For the sole benefit of the bailor• For the sole benefit of the bailee

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GiftsA donor gives a gift

4http://aging.ohio.gov/news/boomerang/2009November/mycommunity.asp

A donee receives a gift

3 requirements of a gift

1. Donor intended to make a gift

2. Gift delivered to donee3. Donee accepts the gift

5http://aging.ohio.gov/news/boomerang/2009November/mycommunity.asp

Gifts

Once a gift is given, it cannot be taken back by the donor.

6http://aging.ohio.gov/news/boomerang/2009November/mycommunity.asp

EXCEPTION in California!

An engagement ring is

not considered a gift.

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EXCEPTION in California!

An engagement ring is considered “given in the contemplation of

marriage”

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EXCEPTION in California!

If an engagement is broken off by the donee, the donor must receive the engagement ring

back.

If the engagement is broken off by the donor, the donee is

allowed to keep the engagement ring.

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EXCEPTION in California!

If an engagement is broken off by the donee, the donor must receive the engagement ring

back.

If the engagement is broken off by the donor, the donee is

allowed to keep the engagement ring.

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Careful—fraudulently accepting an engagement ring may allow the donor to receive back the ring

3 requirements of a gift

1. Donor intended to make a gift

2. Gift delivered to donee3. Donee accepts the gift

11http://aging.ohio.gov/news/boomerang/2009November/mycommunity.asp

Aunt Courtney gave baby Melinda a stuffed bear…

1. Who is the donor?

2. Who is the donee?

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Aunt Courtney gave baby Melinda a stuffed bear…

1. Who is the donor?Aunt Courtney

2. Who is the donee?Baby Melinda

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Aunt Agnes promises her niece Kate that Kate can have her antique ring when she

passes away.

1. Who is the donor?

2. Who is the donee?

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Aunt Agnes promises her niece Kate that Kate can have her antique ring when she

passes away.

1. Who is the donor?No donor

2. Who is the donee?No donee

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(No gift was made.)

3 requirements of a gift

1. Donor intended to make a gift

2. Gift delivered to donee3. Donee accepts the gift

16http://aging.ohio.gov/news/boomerang/2009November/mycommunity.asp

Bailments

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(Has nothing to do with bail or jail.)

Bailment: an agreement to take temporary possession of someone else’s personal property, but not ownership.

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Bailment: not a gift…no change of ownership.

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Bailment: not a sale…no change of ownership.

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Bailment is temporaryExample:You give your car to a

tire shop so they can put new tires on it. The agreement to take temporary possession of your car is a bailment.

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BailmentBailor

The person giving the property is the bailor

BaileeThe person receiving the

property is the bailee

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BailmentYou let your teacher

borrow your DVD for his New Year’s Eve party.

You are the bailor

Your teacher takes temporary possession of your DVD. Your teacher

is the bailee

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Bailee responsibility

The bailee is responsible to take reasonable care of the bailor’s property and to return it to the bailor

on request.(safekeeping)

BaileeThe person receiving the

property is the bailee

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Two types of Bailments:

1. Mutual benefit bailment

2. Gratuitous Bailment

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Mutual benefit bailment

A baileeholds the bailor’s property

to get money.

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Bailment for themutual benefit of the parties

Turn your car over to a repair shop. They get money.

You get a fixed car.

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Bailment for themutual benefit of the parties

Turn your car over to a repair shop. They get money.

You get a fixed car.

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Bailment for themutual benefit of the parties

Give your painting to a professional cleaner. They get money.

You get a fixed painting.

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Bailment for themutual benefit of the parties

Give your painting to a professional cleaner. They get money.

You get a fixed painting.

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Bailment for themutual benefit of the parties

Give your laptop to a repair shop. They get money.

You get a fixed laptop.

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Bailment for themutual benefit of the parties

Give your laptop to a repair shop. They get money.

You get a fixed laptop.

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Gratuitous Bailment

A baileeholds the bailor’s property

and expects nothing in return

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Gratuitous Bailment

A baileeholds the bailor’s property

and expects nothing in return

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Could be for the sole benefit of the bailorCould be for the sole benefit of the bailee

You leave your dog with a friend.You are the bailor.

Your friend in the bailee.Your friend, the bailee, will receive no consideration.

This is a gratuitous bailment.

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You leave your dog with a friend.You are the bailor.

Your friend in the bailee.Your friend, the bailee, will receive no consideration.

This is a gratuitous bailment.

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This is a gratuitous bailmentfor the

sole benefit of the bailor.You are getting something

without paying for it.

You let your girlfriend ride your horse.You are the bailor.

Your girlfriend in the bailee.You, the bailor, will receive no consideration.

This is a gratuitous bailment.

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You let your girlfriend ride your horse.You are the bailor.

Your girlfriend in the bailee.You, the bailor, will receive no consideration.

This is a gratuitous bailment.

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This is a gratuitous bailmentfor the

sole benefit of the bailee.She is getting something

without paying for it.

A bailment is not a gift

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Property left with a bailee generally should not be used by the bailee.

A bailment is not a loan.

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Bailment does not generally allow use

The bailee is generally not entitled to use the bailor’s property

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Bailment does not generally allow use

For example, the dry cleaner is not supposed to wear your suit to their sister’s birthday party.

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Bailment does not generally allow use

For example, the repair shop owner is not supposed to let his girlfriend drive your car to visit San Francisco for the weekend.

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Renting a self-storage unit isNOT a bailment.

Physical property has not left the custody of its owner.

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Renting a self-storage unit isNOT a bailment.

Self-storage is a rental

agreement, not a

bailment.

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Is this a bailment?

You borrow a book from the library …

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Is this a bailment?Yes. You have temporary possession but not ownership.

You borrow a book from the library …

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a. Gratuitous bailmentb. Mutual bailment

You borrow a book from the library. Is this a…

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a. Gratuitous bailmentb. Mutual bailment

You borrow a book from the library. Is this a…

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(Neither party expects consideration.)

a. Sole benefit of the bailorb. Sole benefit of the bailee

You borrow a book from the library. Is this gratuitous bailment for the…

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a. Sole benefit of the bailorb. Sole benefit of the bailee

You borrow a book from the library. Is this gratuitous bailment for the…

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Is this a bailment?

During a party at your house you let your friend borrow your car to pick up some ice at the store …

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During a party at your house you let your friend borrow your car to pick up some ice at the store …

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Is this a bailment?Yes. Your friend has temporary possession but not ownership.

a. Gratuitous bailmentb. Mutual bailment

During a party at your house you let your friend borrow your car to pick up some ice at the store. Is this a…

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a. Gratuitous bailmentb. Mutual bailment

During a party at your house you let your friend borrow your car to pick up some ice at the store. Is this a…

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(Neither party expects consideration.)

Your friend borrows your car to pick up some ice at the store. Is this gratuitous bailment for the…

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a. Sole benefit of the bailorb. Sole benefit of the bailee

Your friend borrows your car to pick up some ice at the store. Is this gratuitous bailment for the…

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a. Sole benefit of the bailorb. Sole benefit of the bailee

Is this a bailment?

You park your car in a paid parking lot downtown.

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Is this a bailment?No. The parking lot does not take possession of your car. This is considered just a “space rental”.

You park your car in a paid parking lot downtown.

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Is this a bailment?

You give your car keys to the valet parking attendant at the Hyatt Hotel and the attendant parks your car.

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Is this a bailment?Yes. Giving your keys is the same as giving possession.

You give your car keys to the valet parking attendant at the Hyatt Hotel and the attendant parks your car.

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Is this a bailment?

You rent a DVD movie from a redbox…

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You rent a DVD movie from a redbox…

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Is this a bailment?Yes. You have temporary possession of the DVD movie but not ownership.

a. Gratuitous bailmentb. Mutual benefit bailment

You rent a DVD movie from a redbox…this is a

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a. Gratuitous bailmentb. Mutual benefit bailment

You rent a DVD movie from a redbox…this is a

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a. Gratuitous bailmentb. Mutual benefit bailment

You rent a DVD movie from a redbox…this is a

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Both parties receive consideration.Redbox gets money,

you get to watch the movie

Roommate Junk

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Your roommate moved out of the apartment you shared but left a lot of their junk. Can you throw it in the dumpster?

Roommate Junk

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Your roommate moved out of the apartment you shared but left a lot of their junk. Can you throw it in the dumpster?

http://www.dca.ca.gov/publications/legal_guides/lt-5.shtml

Roommate Junk

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You are now a gratuitous bailee. You must keep the property safe and take reasonable care of it.

http://www.dca.ca.gov/publications/legal_guides/lt-5.shtml

Roommate Junk

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Very specific laws require you to safely store and attempt to return your roommate’s junk.

http://www.dca.ca.gov/publications/legal_guides/lt-5.shtml