PERSONAL PROPERTY AND BAILMENTS Terms

• abandoned property—Property that an owner has discarded with the intent to relinquish his or her rights in it and mislaid or lost property that the owner has given up any further attempts to locate.
• accession—Occurs when the value of personal property increases because it is added to or improved by natural or manufactured means.
• Article 7 of the UCC—An article of the Uniform Commercial Code that provides a detailed statutory scheme for the creation, perfections, and foreclosure on common carriers’ and warehouse operators’ liens. Also governs documents of title.
• bailee’s rights—Depending on the type of bailment, bailees may have the right to (1) exclusive possession of the bailed property, (2) use of the bailed property, and (3) compensation for work done or services provided.
• bailee—A holder of goods who is not a seller or a buyer (e.g., a warehouse or common carrier).
• bailment—A transaction where an owner transfers his or her personal property to another to be held, stored, delivered, or for some other purpose. Title to the property does not transfer.
• bailment at will—A bailment without a fixed term; can be terminated at any time by either party.
• bailment for a fixed term—A bailment that terminates at the end of the term or sooner by mutual consent of the parties.
• bailment for the sole benefit of the bailee—A gratuitous bailment that benefits only the bailee. The bailee owes a duty of utmost care to protect the bailed property.
• bailment for the sole benefit of the bailor—A gratuitous bailment that benefits only the bailor. The bailee owes only a duty of slight care to protect the bailed property.
• bailor—The owner of property in a bailment.
• bill of lading—A document of title that is issued by a carrier when goods are received for transportation.
• common carrier—A firm that offers transportation services to the general public. The bailee owes a duty of strict liability to the bailor.
• confusion—Occurs if two or more persons commingle fungible goods; title is then acquired by confusion.
• consignee—The person shipping the goods. The bailor.
• consignor—The person shipping the goods. The bailor.
• document of title—A negotiable instrument developed to represent the interests of the different parties in a transaction that uses storage or transportation between the parties.
• donee—A person who receives a gift.
• donor—A person who gives a gift.
• duty of reasonable care—The duty that a reasonable bailee in like circumstances would owe to protect the bailed property.
• duty of slight care—A duty not to be grossly negligent in caring for something in one’s responsibility.
• duty of strict liability—A duty that common carriers owe that says if the goods are lost, damaged, destroyed, or stolen, the common carrier is liable even if it was not at fault for the loss.
• duty of strict liability—Common law duty that says innkeepers are liable for lost, damaged, or stolen goods of guests even if they were not at fault for the loss.
• duty of utmost care—A duty of care that goes beyond ordinary care.
• elements of a bailment—The following three elements are necessary to create a bailment: (1) personal property, (2) delivery of possession, and (3) a bailment agreement.
• gift—A voluntary transfer of title to property without payment of consideration by the donee. To be a valid gift, three elements must be shown: (1) donative intent, (2) delivery, and (3) acceptance.
• gift causa mortis—A gift that is made in contemplation of death.
• gift inter vivos—A gift made during a person’s lifetime that is an irrevocable present transfer of ownership.
• innkeeper’s statutes—State statutes that limit an innkeeper’s common law liability. An innkeeper can avoid liability for loss caused to a guest’s property if (1) a safe is provided in which the guest’s valuable property may be kept and (2) the guest is notified of this fact.
• intangible property—Rights that cannot be reduced to physical form such as stock certificates, certificates of deposit, bonds, and copyrights.
• lost property—When a property owner leaves property somewhere because of negligence, carelessness, or inadvertence.
• mislaid property—When an owner voluntarily places property somewhere and then inadvertently forgets it.
• mutual benefit bailment—A bailment for the mutual benefit of the bailor and bailee. The bailee owes a duty of ordinary care to protect the bailed property.
• ordinary bailments—(1) Bailments for the sole benefit of the bailor, (2) bailments for the sole benefit of the bailee, and (3) bailments for the mutual benefit of the bailor and bailee.
• personal property—Property that consists of tangible property such as automobiles, furniture, and jewelry, and intangible property such as securities, patents, and copyrights.
• possessory lien—Lien obtained by a bailee on bailed property for the compensation owned by the bailor to the bailee.
• purchasing property—The most common method of acquiring title to personal property.
• real property—The land itself as well as buildings, trees, soil, minerals, timbre, plants, and other things permanently affixed to the land.
• special bailees—Includes common carriers, warehouse companies, and innkeepers.
• taking possession—A method of acquiring ownership of unowned personal property.
• tangible property—All real property and physically defined personal property such as buildings, goods, animals, and minerals.
• through bill of lading—A bill of lading that provides that connecting carriers may be used to transport the goods to their destination.
• Uniform Gift to Minors Act and Revised Uniform Gift to Minors Act—Acts that establish procedures for adults to make gift of money and securities to minors.
• warehouse company—A bailee engaged in the business of storing property for compensation. Owes a duty of reasonable care to protect the bailed property.
• warehouse receipt—A written document issued by a person who is engaged in the business of storing goods for hire.
• will or inheritance—A way to acquire title to property that is a result of another’s death.