Class Rreflection 2
ACC 150
THE LEGAL ENVIRONMENT OF BUSINESS
With Doreen Smith, Esquire
Chapter 20
PERSONAL PROPERTY
- Personal Property
- Personal property is tangible and movable and includes rights in intangible items such as intellectual property.
- Real property is non-movable, such as land and anything permanently attached to it (fixtures).
- Property rights include the right to possess, use, enjoy or dispose of the property.
PERSONAL PROPERTY
Gifts.
Inter Vivos Gifts: An ordinary gift between two living persons .
- Intent and
- Delivery. Delivery can be actual or constructive.
CONDITIONAL GIFT
- A conditional gift
- This is when a gift is made subject to a condition.
- Example—I will give you my diamond earrings when you graduate from college.
- Engagement rings
- An engagement ring is typically considered a conditional gift subject to the condition of marrying the other person.
PERSONAL PROPERTY
Finding of Lost Property.
Personal property is lost when owner does not know the location but intends to retain title.
The finder does not acquire title but possession. Absent a contract or statute, finder is not entitled to reward.
PERSONAL PROPERTY
All rights in a property can be held by one individual, called being held in severalty.
Ownership rights may be held concurrently by two or more individuals, in which case it is said to be held in co-tenancy.
The major forms of co-tenancy are:
Tenancy in common.
Joint tenancy.
Tenancy by entirety.
PERSONAL PROPERTY
- Multiple Ownership of Personal Property.
Tenancy in Common. Ownership by two or more persons; interest may be transferred or inherited (or bequeathed).
Joint Tenancy. Ownership by two or more persons; has right of survivorship, so when one joint tenant dies, the other(s) take the ownership share of the deceased.
TENANCY IN COMMON
Example:
Car Owned by Jim and Bob Bob Dies Jim gets ½ of antique & other ½ of antique car goes to Bob’s heirs
Tenancy in Common
JOINT TENANCY
Example:
Owned by Jim and Bob Bob Dies Jim now owns antique car
By Joint Tenancy with alone—severalty
right to survivorship (individual ownership)
PERSONAL PROPERTY
- Multiple Ownership of Personal Property
Tenancy by Entirety. Ownership by both a husband and wife; like joint tenancy but only between spouses. In many states, divorce converts a tenancy by entirety into a tenancy in common.
BAILMENTS
Definition.
Tangible personal property is delivered by the owner (bailor) to another person (the bailee) under an agreement that the identical property will be returned or delivered in accordance with the agreement.
Elements of a Bailment
- Agreement: express or implied.
- Delivery and Acceptance. Bailor’s knowledge required for responsibility.
BAILMENTS
Classification of Ordinary Bailments. In some states, the standard of care required of a bailee is related to the class of bailment:
sole benefit of the bailor: the bailee is required to exercise only slight care and is liable for gross negligence only.
sole benefit of the bailee: the bailee is required to exercise great care and is liable for the slightest negligence, and
for mutual benefit, as in a commercial bailment the bailee must only exercise reasonable care, and is liable for ordinary negligence.
BAILMENTS
Liability for Defects in Bailed Property.
- Bailor has duty to inform of defects in bailed property, but also make reasonable investigation for defects.
Contract Modification of Liability.
- Bailee may limit liability (except for willful misconduct) by contract.
- Example--Dry cleaning business
- When a customer drops off clothes to be dry cleaned, the business is entering into a bailment. The business will take possession but not ownership of property. Business can limit liability by entering into an agreement with the customer.