BU231 Chapter Notes - Chapter 15: Public Auction, Fungibility, Bailment
Document Summary
A bailment is a transfer of possession of personal property without a transfer of ownership; the receiving party agrees to return the property at a later time. The transferor of property owner is called the bailor. The party that receives custody is called bailee. Exists as a combination of tort and contract. The nature of bailment can be compared to common transactions or relation ships such as: Sale: a sale transfers ownership, with or without a change in possession bailment does not alter ownership but requires change in possession. Trust: the creation of trust gives legal ownership to trustee and beneficiary acquires an equitable interest in the subject of trust- possession not relevant. Licence: a bailment requires a transfer of possession and voluntary acceptance or the common law duty of safe keeping- ex: parking lot does not except responsibility for storage of vehicle- grants only licence to use spot.
