TYPES OF PROPERTY

Property: Legally protected rights and interests in anything with an ascertainable value that is
subject to ownership.
Real Property: Land and everything of value attached to it, such as foliage and
permanent structures, or found under it, such as minerals and water.
Personal Property: Property that is movable sometimes referred to as chattel or
personalty.
Tangible Personalty: Personal property that has physical substance (e.g., a
television set or car).
Intangible Personalty: Personal property the value of which does not depend on
physical existence (e.g., stocs, bonds, patents, and copyrights).
Fixtures: !uildings and other improvements other than trade fixtures attached to real
property such that
(") the fixture cannot be removed without causing substantial damage to the real
property, or
(#) the fixture is so adapted to and takes on te caracteristics o! te real property
that it becomes part of that real property.
PROPERTY O"#ERS$IP
Fee Simple: $bsolute ownership entitling the property owner to possess, use, or dispose of the
property as she chooses.
%oncurrent O&nersip
Tenancy in %ommon: %o&ownership of property in which each party owns an undivided
interest in the whole property.
'oint Tenancy: 'oint ownership of property in which each co&owner owns an undivided
interest in a portion of the whole property.
Tenancy by te Entirety: 'oint ownership of property by husband and wife, where
neither party can transfer his or her interest in the property without the other(s consent.
%ommunity Property: 'oint ownership of property by husband and wife in which each
spouse owns an undivided one&half interest in property acquired during marriage.
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-est(s !usiness Law (.th ed.)
(%)*IRI#+ O"#ERS$IP: #O#,+IFTS
/wnership of personal property may be obtained in the following ways+
Purcase: Property rights may be ac0uired in exchange for money or other valuable
consideration.
Possession: Property rights may be ac0uired by taing possession of unclaimed, lost, or
abandoned property.
Production: Property rights may be ac0uired by creating the property.
(ccession: Property rights may be ac0uired by adding value to existing property by
personal labor or materials.
/wnership by accession may be subject to challenge if (") the accession was
wrongfully done, or (#) the accession greatly increased the value of the property
or changed its identity.
%on!usion: Property rights may be ac0uired by mixing together goods belonging to two
or more persons in such a way so that the separately&owned goods can no longer be
identified.
(%)*IRI#+ O"#ERS$IP: +IFTS
+i!t: $ny voluntary transfer of property made without consideration, past or present.
1n order for a transfer of property to be considered a gift, the following conditions must
be satisfied+
(") -onative Intent: 2he donor (the person giving the gift) must intend for the
transfer to be a gift3
(#) -elivery: 2he gift must be delivered to the donee (the person for whom the gift
is intended), who, as a result of the gift, must be free to exercise dominion
(ownership rights) over the property in 0uestion3 and
(4) (cceptance: 2he donee must accept the gift.
Inter Vivos +i!t: $ gift made during the donor(s lifetime and not in contemplation of
imminent death.
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-est(s !usiness Law (.th ed.)
Causa Mortis +i!t: $ gift made in contemplation of the donor(s death. 2he donee must
survive the donor in order to accept the gift. 1f the donor does not die as expected, the
gift is revoed.
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-est(s !usiness Law (.th ed.)
.IS/(I-0 /OST0 OR (1(#-O#E- PROPERTY
.islaid Property: Property with which the owner has voluntarily parted and then cannot find or
recover. -hen mislaid property is found, the finder does not obtain title to the mislaid property,
but rather holds it in trust for the true owner.
/ost Property: Property with which the owner has involuntarily parted and then cannot find or
recover. -hen lost property is found, the finder can claim title to the property superior to that of
any other person except the true owner.
Estray Statute: $ statute defining a finder(s rights in property when its true ownership is
unnown.
(bandoned Property: Property with which the owner has voluntarily parted with no intention of
recovering it. -hen abandoned property is found, the finder can claim title to the property
superior to that of any other person including the true owner.
1(I/.E#TS
1ailment: $ situation in which the personal property of one person (the bailor) is entrusted to
another person (the bailee), who is obligated to return the bailed property to the bailor or dispose
of it as directed by the bailor.
!ailments involve only personal property real property cannot be the subject of a
bailment.
Possession of the bailed property must be transferred to the bailee in such a way that+
(") the bailee is given exclusive possession and control over the property (subject to
the bailor(s superior rights), and
(#) the bailee kno&ingly accepts the personal property delivered by the bailor.
$ bailment agreement may be either express (i.e., written) or implied (i.e., not written)
and presumes that the bailed property will be returned to the bailor or a third party
designated by the bailor or will be disposed of by the bailee in the manner agreed to by
the bailee and the bailor.
OR-I#(RY 1(I/.E#TS
2here are three types of ordinary bailments+
(") 1ailment !or te Sole 1ene!it o! te 1ailor: $ gratuitous bailment made for the
convenience and benefit of the bailor3
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(#) 1ailment !or te Sole 1ene!it o! te 1ailee: $ gratuitous bailment made for the
convenience and benefit of the bailee3 and
(4) 1ailment !or te .utual 1ene!it o! te 1ailor and 1ailee: 2his most common ind of
bailment involves some compensation by the bailor for services rendered by the bailee.
1(I/EES: RI+$TS (#- -*TIES
Rigts o! 1ailees: %ertain rights are implicit in any bailment agreement (absent explicit terms to
the contrary), namely
(") the rigt to control and possess the bailed property during the term of the bailment
agreement,
(#) in some cases, the rigt to use the bailed property,
(4) except in cases of gratuitous bailments, the rigt to be compensated, and
()) the rigt to limit teir liability for damage to the bailed property by agreement with the
bailor, as long as the limitation (a) is called to the bailor(s attention and (b) is not
contrary to public policy.
-uties o! te 1ailee: $ bailee must
(") tae proper care of the bailed property, and
(#) surrender the bailed property to the bailor or dispose of it in accordance with the
bailor(s instructions.
$ bailee who fails to return or dispose of the bailment as instructed by the bailor is
presumed to be negligent.
1(I/ORS: RI+$TS (#- -*TIES
Rigts o! 1ailors: $ bailor has the right to expect that
(") its property will be protected &it reasonable care while in the bailee(s possession,
(#) the bailee will use the property as agreed,
(4) the bailee will relin2uis the property as directed by the bailor,
()) the bailee will not convert the goods unless agreed,
(5) the bailee3s liability &ill not be limited except as nown to the bailor and as permitted
by law, and
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(6) repairs or service to the property will be done in a wormanlie manner.
-uties o! 1ailors: $ bailor must
(") compensate the bailee as agreed, and
(#) noti!y the bailee of all defects nown to or reasonably discoverable by the bailor.
TER.I#(TIO# OF 1(I/.E#TS
!ailments for a speci!ic term end when the stated term lapses. /therwise, a bailment can be
terminated at any time by+
(") mutual agreement of the bailor and bailee3
(#) demand by the bailor or bailee3
(4) satis!action of the purpose of the bailment3
()) an act by the bailee that is inconsistent &it te terms of the bailment3 or
(5) operation o! la&.
-O%*.E#TS OF TIT/E
-ocument o! Title: $ document which purports (i) to be issued by or addressed to a bailee and
(ii) to cover goods in the bailee(s possession which are either identified or fungible portions of an
identified mass.
1ill o! /ading: $ document, issued by a person engaged in the business of transporting goods,
verifying the receipt of goods for shipment.
"areouse Receipt: $ receipt issued by a person engaged in the business of storing goods for
hire.
-elivery Order: $ written order to deliver goods directed to a warehouser, carrier, or other
person who, in the ordinary course of business, issues warehouse receipts or bills of lading.
SPE%I(/ TYPES OF 1(I/.E#TS
%ommon %arrier: $n owner and provider of publicly&available transportation services who
renders those services in return for compensation.
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-est(s !usiness Law (.th ed.)
2he delivery of goods to a common carrier creates a bailment relationship between the
bailor whose property is being shipped and the common&carrier bailee, who is held
strictly liable for the bailed personal property.
"areouser: $ provider of storage for compensation.
7nlie the strictly&liable common carrier, a warehouser is liable for loss or damage to
bailed property resulting from the warehouser(s negligence. 8owever, the warehouser is
expected to exercise a iger degree o! care, commensurate with the warehouser(s
status as a professional bailee, than an ordinary bailee.
Innkeepers: 1nneepers, hotel owners, and others who provide lodging to the public for
compensation as a regular business are strictly liable for any loss of or damage to their guests(
property.
%h. )*+ Personal Property and !ailments & ,o. *
-est(s !usiness Law (.th ed.)