Quiz 37: Personal Property, Bailment, and Insurance

Business

Gift When there is voluntary transfer of a property with no consideration then it is called as gift. If the transfer of the property is supported some sort of consideration then it becomes a purchase. The lack of consideration makes all the difference. Facts: The person V purchased the painting and got it to his son M on his 21 st birthday but reserve the life estate of the painting. When V dies the cost of painting was $2.5 million therefore M requested for painting to his step mother K but K denied. The appellate court rewarded the painting to M. It is required to state that whether V make gift vivo. A gift is valid and irrevocable only when these elements are followed- 1- Intention of the donor - A gift is only effective if the donor has intended to give the gift. It can be judged by the language of the donor or situations around him. 2- Delivery of the gift- For a gift to become valid, it should be delivered to the person getting it. Until and unless the person does not receive the gift it is not effective. 3 -Acceptance - No gift is effective if the person taking it refuses to do so. The gift has to be accepted All these elements should be fulfilled in case of transfer of a gift. Gift inter vivo is stated when a person entitles to transfer a property to another person in his lifetime. It is a transfer of ownership and is irrevocable. In the case the V gives the ownership of the painting to his son M. The gift is valid because it meets all the three elements. It is given with the intention to gift and is also delivered through the letter that he wrote to his son, and there is proof of refusing the gift by his son. Hence, it is a valid gift and should be given to his son M.

There are times when people tend to find someone's personal property at a place. The property happened to be there could be because of various reasons. It could be mislaid by the owner or it could be a lost property. There is difference in claiming for the property for whoever finds it depending upon what sort it was. Facts: F was a gust in the inn C where in the room F finds a bundle of money and the management was informed. State police reveled that bundle has $4,200 cash and few bills. F sued for money as finder but J.K the owner of inn sued for money as the owner of place where money was found. Trial court declared the property as mislaid and hand it over to J.K. F apples. It is required to state that if property was lost or mislaid. Mislaid property- A property which is placed by the owner voluntarily but later on forgets inadvertently to collect it. The owner of the property can come back to collect it when owner remembers it. Also by law, the property mislaid is not of the finder rather the owner of the premises where it is found has possession on the property. The owner of the premises also does not get the ownership instead he acts as a bailee of the property unless the real owner comes to collect it. Lost property - When the property is found to be left somewhere because of the owner's negligence, carelessness or inadvertence, then the property is considered as lost property. The title of the property is owned by the finder except the real owner. If the real owner happens to find the finder or the finder turns out to know the real owner then finder is suppose to return the property back. Finder can also do reasonable practices to find out the owner. The money received by F in the drawer of the hotel room is a mislaid property because the person must have kept it in the drawer voluntarily and must have forgotten. In that case the owner of the hotel gets the possession of the property and not F. So, K should receive the money in the packet.

Bailment It is a transaction between two parties in which the owner of the property transfers his personal property to some other party to store it or deliver it or for some other purposes. The person who gets the property for safeguarding or securing in the bailment is called as bailee and the owner of the personal property is called bailer. The title still stays with the bailer and does not get transferred to bailee. The bailee has to follow the instructions of the bailer. Facts: The SOC health centre provides locker facility to his members and held master key for each locker. M was member of the SOC. One day M left an amount of $400 and an expensive watch in the locker. When M returns the cash and watch was not there. M claimed SOC under bailment. The trial court favored M and rewarded M an amount of $19,500 as value of property lost. State I bailment was created. Bailment is created only when it is proved with following necessary elements- 1-The bailing property can be both tangible and intangible but it should just be a person's personal property. 2-The bailee must have an exclusive control over the personal property and should knowingly and willingly accept the personal property for bailment. 3-The bailment has no such formal considerations. It can be implied or express. The express form can have bailment in whether written or oral form. The bailment is best in the written form if one wants to avoid frauds. In the case though the health care center do not willingly accepted the bailment and declared no responsibility of losses of the valuables but still the locker which had the personal property of M could be opened from either the keys M had or by the master key of health center. Health centre SOC had exclusive control over the property and hence they are subject to pay the damages. It is an implied form of bailment where the bailee is responsible for the lost property. Thus it can be concluded that a bailment was created and M wins the case against SOC health center.

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