Chapter 17
Personal Property and Bailment
Personal Property
• Real Property: Land and anything permanently
attached to it.
• Personal Property: Anything that can be owned
other than real property.
• Tangible: Property that has substance and can be
touched.
• Intangible: Property that has no substance and
cannot be touched.
Gifts of Personal Property
Three Requirements:
– Donor (one making the gift)
must intend to make the gift
– The gift must be delivered
– Donee (one receiving the gift)
must accept the gift
Lost Property
• Finder of property
has the legal duty to
return the property
to the owner
• (Local laws may vary)
Rewards and Reimbursement
• Finders of lost property are entitled to
any reward offered if they knew about it
when returning property.
• No reward??? They are entitled to be
reimbursed for any expenses incurred.
Misplaced Property
• If property is found “left behind” in a
public or semi-public place, it is
considered misplaced not lost
• Example: purse left in dressing room
Abandoned Property
• Property that has been discarded by the
owner without intent to reclaim ownership.
• You have the right to keep abandoned
property (may be some exceptions).
Stolen Personal Property
• A thief has no title to stolen goods
• An innocent purchaser of stolen goods is
obliged to return it to the owner
Intellectual Property
• Original work fixed in a tangible medium
of expression
Patents
• An exclusive right granted
by the federal government
to make, use, or sell an
invention
• Not only on products, but
may consist of a process or
an article of manufacture
• U.S. Patent and Trademark
Office = 17 years
Copyrights 
• The right granted to an author,
composer, photographer, or artist to
exclusively publish and sell work.
• Protected for life of author plus 70 years
• In 1989, the use of the copyright notice
was made optional
Fair Use Doctrine:
Copyrighted material may be
reproduced without permission in
certain cases...education.
Downloading and uploading music
on the Internet for others’ use is a
violation of copyright law
Trademarks 
• A distinctive mark, symbol or slogan used by
a business to identify goods and distinguish
them from other products.
• Once established, others cannot use it.
• Example: Words, names, symbols
• A registered trademark continues for 10 years and
may be renewed in 10 year increments.
Mutuum
• When you loan goods to someone with the
understanding that they will be used and
later replaced with different identical goods.
i.e.: borrowing a cup of sugar
Bailments of Personal Property
• Bailment: The transfer of possession and control
of personal property to another with the intent that
the same property will be returned later.
• Bailee: To whom the property is transferred
• Bailor: The person who transfers the property
See examples 4 and 5 on p. 368.
Main Types of Bailments
• Bailments for Sole Benefit of Bailor
• Bailments for Sole Benefit of Bailee
• Mutual-Benefit Bailments
• Most are based on contracts; if a bailment
contains consideration, then there is a valid
contract.
Gratuitous Bailments
• Transfer of property without either party
giving or asking for payment
• Usually considered favors
Bailments for Sole Benefit of Bailor
• The bailee owes a duty to use only slight
care, as the bailee is receiving no benefit
from the arrangement
• Only refrain from “Gross Negligence”
Bailments for Sole Benefit of Bailee
• The bailee is required to use great care
because possession of the goods is intended
solely for the bailee’s benefit
• Responsible for “Slight Negligence”
Mutual-Benefit Bailments
• One in which both parties receive some
benefit
• The bailee owes a duty to use
reasonable care.
• Responsible for “Ordinary Negligence”
Tortious Bailee:
• One who wrongfully retains possession
of lost property of another or is
knowingly in possession of stolen
property.
• Burden of Proof is on the bailee.
Special Bailments
• Hotel Keeper
– Duty to Accept All Guests (Civil Rights Act 1964)
– Duty of Reasonable Care (See bullets top p. 376)
– Lien and Credit Card Blocking
Special Bailments
• Common Carriers
– Carrier: a business that transports persons, goods, or both
– Common Carrier: Provides transportation to the general public
• Common Carriers of Goods Not Liable…
–
–
–
–
–
Acts of God
Acts of a public enemy
Acts of public authorities
Acts of the shipper
The inherent nature of the goods (perishable)
Special Bailments
• Common Carriers of Passengers
– A carrier must use reasonable care in protecting
passengers.
– Not responsible if injuries are not foreseeable
or preventable
Special Bailments
• Bumped Airline Passengers
– When overbooked, airlines must ask for
volunteers to give up their seats
– Passengers “bumped” may be entitled to
compensation plus the money back for the ticket
– If the airline can arrange alternative travel within
1 hour…no compensation
Special Bailments
• Passengers Baggage
– Carriers are obligated to accept a reasonable
amount of passengers baggage
– A carrier is an insurer of all luggage that is
checked
– Federal rules place limits…
• U.S. travel maximum $2,500 per passenger