LLB220 Study Guide - Midterm Guide: City Of Sydney, All England Law Reports, Carburetor
BAILMENT AND PENFOLD’S
Bailment
Definition: A bailment arises when there is delivery of chattels by the owner, or a person with a
right to possession (the bailor), into the possession of another person (the bailee) upon the
express or implied promise that the chattels will be redelivered to the bailor or used in a
particular way
Even though delivery by the bailor is not always necessary, the knowledge and consent of the
bailee is (WD & HO Wills v State Rail Authority of NSW (1998) 43 NSWLR 336)
Two cases discuss: Chapman Bros v Verco and Waltons Stores
Hobbs v Petersham Transport Co
CAUSES OF ACTION
The type of possessory rights determine the right to sue third parties whether in trespass,
conversion, detinue or bringing an action on the case
-Trespass
-Conversion; P must be in possession at the time of the unlawful act or immediate
possession
-Detinue; wrongful detention of possession – p with possession or right to immediate
possession, refusal to return item
-Action on the case; right to damages where chattel is permanently destroyed –
compensation for lost/permanently damaged chattel
Fixed term Bailment: reversionary right, temporary possessor has actual possession, bailor has
right to future possession and once that has expired then they have right to immediate
possession.
Bailment at will: Bailee has actual possession at law but bailor has immediate possession at any
time e.g textbook.
Penfold’s Wines
Facts:
-Penfolds sells wine in bottles embossed with the words “This bottle remains the property
of Penfolds Wines”
-Sold on condition bottles are returned
-Title does not pass – this is a bailment of the bottles
-Purchaser becomes bailee of the bottle; Penfolds is bailor
-Mr Elliott is an hotelier – hotel supplies bulk wine
-People bring their empty Penfolds bottles to Elliott who refills them
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Document Summary
Even though delivery by the bailor is not always necessary, the knowledge and consent of the bailee is (wd & ho wills v state rail authority of nsw (1998) 43 nswlr 336) Two cases discuss: chapman bros v verco and waltons stores. The type of possessory rights determine the right to sue third parties whether in trespass, conversion, detinue or bringing an action on the case. Conversion; p must be in possession at the time of the unlawful act or immediate possession. Detinue; wrongful detention of possession p with possession or right to immediate possession, refusal to return item. Action on the case; right to damages where chattel is permanently destroyed compensation for lost/permanently damaged chattel. Fixed term bailment: reversionary right, temporary possessor has actual possession, bailor has right to future possession and once that has expired then they have right to immediate possession.
