BU231 Study Guide - Final Guide: Races Of Starcraft, Letterheads, Cybersquatting
BU- SOS Notes
Bailment
• Transfer of possession of personal property without a transfer of ownership
o Not including land but can include documents (notes, bonds, stocks, etc.)
o Transferor/owner of property is the bailor – still have possession and that the item will
go back to the bailor eventually
o Party that receives custody is the bailee
o Can be contractual, non-contractual, or involuntary
• Contractual
o Bailment for value
o Benefits both parties
o Renting a hotel
• Non-Contractual
o Gatuitous
o Can benefit either or both parties
o No intention to create legally binding relationship
o Borrowing something
What to Prove for Bailment?
• Law of bailment places the burden on bailee of showing they were not negligent, must offer a
reasonable alternative explanation (reverse onus)
o Easier to sue in bailment vs. tort
o Ex. Say your car gets blown up at a repair shop, you need to establish the condition of
the car before and after (show they wrecked it)
Sub-Bailee
• A sub-bailee is when a bailee gives the objects to another person
o Ex. Lady gives ring to shop, shop contracts the repair to another shop. If second shop
loses the ring, both shops owed a duty of care to the lady.
Bailee’s Dut of Care
• All bailees have a duty of care to take care of the possession
• In contract, often the terms (express or implied) outline the duties and liabilities of the bailee
o Exemption clauses written into contracts for liability of bailees are constructed very
strictly by the court
o If goods are damaged for any reason not related to performance related to the contract,
bailee is not protected by the exemption clause
Standard of Care
• Gratuitous bailment for benefit of Bailee
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o Highest standard of care
o Bailor receives no consideration, thus the bailee should compensate the bailor when
damage occurs to goods as result of any slight carelessness
o Ex. Can I borrow your lawnmower?
• Gratuitous bailment for benefit of Bailor
o Lowest standard of care is owed on the gratuitous benefit where the benefit is to the
bailor
▪ Not being paid for the favour, no benefit to you just the bailor
o Bailee should not be under a particularly high duty towards bailor because the bailee is
doing a favour for bailor
o Ex. Can I put my car in your garage for the winter
• Bailment for value – contractual bailment – standard falls between gratuitous bailment for the
bailor and bailee
o Falls between the 2 above where the bailee for value is expected to take the same care
of goods as a prudent and diligent person should take care of goods
o E. a ill e at ou shop hile ou seie it
• Factors to consider when determining standard of care:
o Type of goods
o Value of goods
o Extent of promise to look after goods
o If goods are easily damaged or stolen
Liens
• Liens give the bailee a right to retain possession of goods until the bailor pays what is due for
the services
o Repairers, innkeepers, carriers, lawyers/bankers have the right of liens by common law
o Storage bailees have it by statute
Right of Sale
• There is no common law right of sale – the only way to get this right is when its under the
statute or you cannot get the right of sale
• For a gratuitous situation you cannot get the right of sale
• Bailees must follow these steps to exercise this right:
o Certain time needs to elapse after payment is due (Notice is set-out pay up or we are
going to exercise our right to sale)
o Advance notice must be given to bailor of the intention to sell
o Sale must be advertised
o Sales must be a public auction
• Note: The proceeds of the sale first go to reimburse bailee for costs of sale, then the overdue
charges, any in excess goes back to original bailor
Special Types of Bailment
1. Storage and Safekeeping
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a. Standard of care depends on the circumstances in the contract, but the owner is
required to exercise due care to protect the goods from harm
b. Not customarily obliged to insure goods against fire, but when expressly contracted to
do so and they fail, they owe the bailor the insured value of the goods
c. However for professional stores, they have the right of lien but the lien must be put into
the contract
2. Transportation
a. Gratuitous Carrier – Help your friend move down the street
i. Reasonable person under standard of care
b. Private Carrier – Moe a speifi kid of thig ad the do’t do it all the tie, esee
the right to choose their clients
i. Competent professional under standard of care
c. Common Carrier – Move anything anywhere – Anyone that holds themselves out to
public as a carrier to get rewards/payment – they are an insurer and a bailee
i. Highest standard of care
d. Liability
i. Shipper (Bailor) needs to only show that the carrier received the goods in
condition, and they were delivered in bad condition. Unless otherwise agreed,
common carriers are liable for the full value of the good
ii. Thus, the burden is on the carrier to establish cause of loss within a recognized
defence
e. Defences against liability
i. Act of God
1. Fie is’t a at of god uless lightig stated it
2. Cannot work as a defence if the carrier took the risk knowing about the
potential damage it may cause
ii. Inherent vice in the goods
1. Something is wrong with the goods itself
iii. Default by shipper
1. Contract contains implied promise that the goods are safe to carry, thus
making the movers pack everything themselves, implied duty on the
shipper that the goods must be safe for transportation
3. Innkeepers
a. Innkeepers are any people who maintain an establishment offering lodging to any
member of the public – as long as you can pay, you can stay there
b. Must keep the belongings of their guests and patrons safe. They have duty to take
reasonable care of the guests belongings – They must avoid negligent acts of themselves
and their employees from suffering from loss or theft
c. The Innkeepers act limits liability to $40, as long as:
i. They display a copy of the act
ii. They provide safe-keeping when it is requested by the guest
d. If a customer specifically states that they would want something to safe-keeping, the inn
is fully liable
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find more resources at oneclass.com
Document Summary
Law of bailment places the burden on bailee of showing they were not negligent, must offer a reasonable alternative explanation (reverse onus: easier to sue in bailment vs. tort, ex. Say your car gets blown up at a repair shop, you need to establish the condition of the car before and after (show they wrecked it) Sub-bailee: a sub-bailee is when a bailee gives the objects to another person, ex. Lady gives ring to shop, shop contracts the repair to another shop. If second shop loses the ring, both shops owed a duty of care to the lady. Bailee"s dut(cid:455) of care: all bailees have a duty of care to take care of the possession. In contract, often the terms (express or implied) outline the duties and liabilities of the bailee: exemption clauses written into contracts for liability of bailees are constructed very strictly by the court.
