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Lecture

ADMS2610-Session9-Ch21.docx

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Department
Administrative Studies
Course
ADMS 2610
Professor
Robert Levine
Semester
Winter

Description
ADMS2610 Session 9 Chapter 21(pg. 395-397, 400-401- 407-410) Nature of Bailment - Bailment o Transfer of a chattel by the owner to another for some purpose, which the chattel (tangible, movable property) to be later returned or dealt with in accordance with the owner’s instruction o Special arrangement between a person (bailor) who owns or lawfully possess a chattel, and another person (bailee) who is given possession of the chattel for a specific purpose - Bailor – the owner of a chattel who delivers possession of the chattel to another in bailment - Bailee – the person who takes possession of a chattel in a bailment - Types of bailment o For reward or gratuitous o Reward (high standard of care) o Gratuitous (lower standard of care) o Determines standard of care that bailee is held to o Higher for special forms of bailment such as common carriers Elements of Bailment - (1) Delivery of goods by the bailor - (2) Possession of the goods by bailee for a specific purpose - (3) Return of the goods to the bailor at a later time, or the disposition of the goods according to the bailor’s wishes Sub-bailment - Bailee becomes the sub-bailor, and someone else becomes sub-bailee o Requires permission of bailor o Allowed under a common custom or practice of a trade Bailor-Bailee Relationship - Delivery o Delivery must take place before the bailor-bailee relationship comes into existence o Delivery can be apparent - Possession o Requirement of delivery of possession  Includes constructive possession o Title retained with bailor (bailee receives possession only) o Bailee Rights  Right to institute legal proceedings for:  Interference with property  Wrongful injury to the goods - Return of Goods o Must return goods or dispose of goods according to bailor’s instructions o Same goods must be returned  Exception: fungible goods – must return same quantity and same quality - Liability for Loss or Damage o Standard of Care  Different standards for each of the forms of bailment  Bailee’s liability varies from one type of bailment to another - General Liability – Bailee liable for: o Failure to return goods o Returning goods damaged or destroyed  Exception: reasonable wear and tear o Onus shifts to bailee to prove standard of care not breached  Reason: Bailee has knowledge of event, not bailor - Exculpatory Clauses (Exclusion Causes) o A clause in contract that limits or exempts a party from any liability for damage to the good o Bailee’s attempt to limit thei
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