This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
There are two kinds of property:There are two kinds of property:
1.1. Real Property –Real Property – includes land and property includes land and property that is permanently attached to it.that is permanently attached to it.
Tangible Property –Tangible Property – All real property and All real property and physically defined personal property.physically defined personal property. e.g., buildings, goods, animals and minerals.e.g., buildings, goods, animals and minerals.
Intangible Property –Intangible Property – Rights that cannot be Rights that cannot be reduced to physical form.reduced to physical form. e.g., stock certificates, certificates of deposit, e.g., stock certificates, certificates of deposit,
Acquiring Ownership in Personal Property Acquiring Ownership in Personal Property (continued)(continued)
By GiftBy Gift A voluntary transfer of title to property without A voluntary transfer of title to property without
payment of consideration by the donee.payment of consideration by the donee. Three elements necessary to be a valid gift:Three elements necessary to be a valid gift:
Acquiring Ownership in Personal Property Acquiring Ownership in Personal Property (continued)(continued)
GiftsGifts (continued)(continued)
Types of gifts:Types of gifts:
Gifts Gifts inter viosinter vios – – gifts made during a donor’s gifts made during a donor’s lifetime that are irrevocable present transfers lifetime that are irrevocable present transfers of ownership.of ownership.
Gifts Gifts causa mortiscausa mortis – gifts that are made in – gifts that are made in anticipation of death.anticipation of death.
Uniform Gifts to Minors ActUniform Gifts to Minors Act Revised Uniform Gifts to Minors ActRevised Uniform Gifts to Minors Act
Acquiring Ownership in Personal Property Acquiring Ownership in Personal Property (continued)(continued)
By Will or InheritanceBy Will or Inheritance Will –Will – gift to beneficiaries named in a will. gift to beneficiaries named in a will. Inheritance –Inheritance – heirs stipulated in an inheritance heirs stipulated in an inheritance
statute.statute. By AccessionBy Accession
Occurs when the value of personal property Occurs when the value of personal property increases because it is added to or improved increases because it is added to or improved by natural or manufactured means.by natural or manufactured means.
Acquiring Ownership in Personal Property Acquiring Ownership in Personal Property (continued)(continued)
By ConfusionBy Confusion Occurs when Occurs when fungible goodsfungible goods are commingled. are commingled. The owners share title to the commingled The owners share title to the commingled
goods in proportion to the amount of goods goods in proportion to the amount of goods contributed.contributed.
By DivorceBy Divorce When a marriage is dissolved by a divorce, the When a marriage is dissolved by a divorce, the
parties obtain certain rights in the property of parties obtain certain rights in the property of the marital estate.the marital estate.
Property is Property is mislaidmislaid when its owner voluntarily when its owner voluntarily places the property somewhere and then places the property somewhere and then inadvertently forgets it.inadvertently forgets it.
The owner of the premises where the personal The owner of the premises where the personal property is property is mislaidmislaid is entitled to take is entitled to take possession of the property against all except possession of the property against all except the rightful owner.the rightful owner.
Personal property that an owner leaves Personal property that an owner leaves somewhere because of negligence, somewhere because of negligence, carelessness, or inadvertence.carelessness, or inadvertence.
The finder of The finder of lost propertylost property obtains title to the obtains title to the found property against everyone except the found property against everyone except the true owner.true owner.
Many states have enacted estray statutes that Many states have enacted estray statutes that give a finder of mislaid or lost property clear give a finder of mislaid or lost property clear title to the property if certain requirements are title to the property if certain requirements are met:met: Reporting the find to an appropriate government agencyReporting the find to an appropriate government agency Advertising the lost propertyAdvertising the lost property The owner not claiming the property within a stated time The owner not claiming the property within a stated time
Property is classified as abandoned if:Property is classified as abandoned if: An owner discards the property with the intent An owner discards the property with the intent
to relinquish his or her rights in it, orto relinquish his or her rights in it, or An owner of mislaid property gives up any An owner of mislaid property gives up any
further attempts to locate itfurther attempts to locate it Anyone who finds abandoned property Anyone who finds abandoned property
Occurs when the owner of personal property Occurs when the owner of personal property transfers the property to another to be held, transfers the property to another to be held, stored, delivered, or for some other purpose.stored, delivered, or for some other purpose.
Title to the property does not transfer.Title to the property does not transfer. Bailor –Bailor – the owner of property in bailment. the owner of property in bailment. Bailee –Bailee – a holder of goods who is not a seller a holder of goods who is not a seller
or a buyer.or a buyer. e.g., a warehouse or common carriere.g., a warehouse or common carrier
Elements Necessary to Create a Bailment Elements Necessary to Create a Bailment (2 of 2)(2 of 2)
Bailment AgreementBailment Agreement A bailment may be either A bailment may be either expressexpress or or impliedimplied.. ExpressExpress bailments can be either written or oral. bailments can be either written or oral. Under the Under the Statute of FraudsStatute of Frauds,, a bailment must a bailment must
be in writing if it is for more than one year.be in writing if it is for more than one year. A bailment may be A bailment may be impliedimplied from the from the
Depending on the type of bailment, bailees Depending on the type of bailment, bailees may have the right to:may have the right to: Exclusive possession of the bailed propertyExclusive possession of the bailed property Use of the bailed propertyUse of the bailed property Compensation for work done or services Compensation for work done or services
The bailor owes the duty to:The bailor owes the duty to: Pay the agreed-upon compensation to the Pay the agreed-upon compensation to the
baileebailee Not interfere with the bailee’s possessory Not interfere with the bailee’s possessory
interest during the term of the bailmentinterest during the term of the bailment Notify the bailee of any defects in the bailed Notify the bailee of any defects in the bailed
property that could cause injury to the bailee or property that could cause injury to the bailee or othersothers
Special Bailee’s Duty of Care Special Bailee’s Duty of Care (1 of 2)(1 of 2)
Type of BaileeType of Bailee LiabilityLiability Limitation on LiabilityLimitation on Liability
Common CarrierCommon Carrier Strictly liable except for:Strictly liable except for:1. Act of god1. Act of god2. Act of a public enemy2. Act of a public enemy3. Order of the government3. Order of the government4. Act of the shipper4. Act of the shipper5. Inherent nature of the goods5. Inherent nature of the goods
May limit the dollar amount of May limit the dollar amount of liability by offering the bailor liability by offering the bailor the right to declare a higher the right to declare a higher value for the bailed goods for value for the bailed goods for an additional charge.an additional charge.
Warehouse CompanyWarehouse Company Ordinary negligenceOrdinary negligence May limit the dollar amount of May limit the dollar amount of liability by offering the bailor liability by offering the bailor the right to declare a higher the right to declare a higher value for the bailed goods for value for the bailed goods for an additional charge.an additional charge.
Special Bailee’s Duty of Care Special Bailee’s Duty of Care (2 of 2)(2 of 2)
Type of BaileeType of Bailee LiabilityLiability Limitation on LiabilityLimitation on Liability
InnkeeperInnkeeper Strictly liableStrictly liable State statutes may limit the State statutes may limit the liability of an innkeeper for liability of an innkeeper for others’ rightsothers’ rights
Documents of TitleDocuments of Title Negotiable instruments developed to represent Negotiable instruments developed to represent
the interests of the different parties in a the interests of the different parties in a transaction that uses storage or transportation transaction that uses storage or transportation between the parties.between the parties. Warehouse ReceiptsWarehouse Receipts Bills of LadingBills of Lading
Article 7 of the UCCArticle 7 of the UCC governs documents of governs documents of title.title.
A written document issued by a person who A written document issued by a person who is engaged in the business of storing goods is engaged in the business of storing goods for hire.for hire. e.g., warehouse company or storage e.g., warehouse company or storage
companycompany Often a preprinted form drafted by the Often a preprinted form drafted by the
Document of title that is issued by a carrier Document of title that is issued by a carrier when goods are received for transportation.when goods are received for transportation.
Issued by:Issued by: Common carriersCommon carriers Contract carriersContract carriers Freight forwardersFreight forwarders Other persons engaged in the business of Other persons engaged in the business of
transporting goods for hiretransporting goods for hire
A bill of lading that provides that A bill of lading that provides that connecting connecting carrierscarriers may be used to transport the goods may be used to transport the goods to their destination.to their destination.
Original carrier that issued the bill of lading is Original carrier that issued the bill of lading is liable for any damages or loss to the goods liable for any damages or loss to the goods caused by the connecting carrier.caused by the connecting carrier.