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BAILMENT RELATIONS
HOW IS A BAILMENT CREATED?
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If you lent something to a friend it would be a bailment. You would be the bailor and your friend
would be the bailee. Bailment is not selling or giving something, it is lending or loaning. There are 4 bailment
characteristics. (1).It must be personal property, this does not include real property such as your house or a building. Real
property can only be leased. (2).There must be a transfer of temporary possession. Property can be bailed by any
person in possession of it. The two ways to transfer possession and control are; actual and constructive bailments.
(3).There must be a transfer of temporary control. With custody it is possible to have temporary control of another
person's personal property without having bailment. However, other then custody, in order to have the transfer of temporary
control, bailment must arise. (4).Both parties must intend for the goods to be returned to the bailor. When goods
are returned they are supposed to be identical. However, in some cases goods can be fungible.
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Bailment: transfer of possession without the
transfer of ownership.
Bailor: the party who gives up possession of the property.
Bailee: the party who accepts possession
and control.
Actual Bailments: bailees recieve and accept the goods
themselves.
Constructive Bailment: the bailee receives
and accepts a symbol of the personal property.
Custody: care and present control of another's personal
propery under the owner's direction.
Fungible: no difference between one unit of
the goods and another.
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Bailments end when: a set time limit has passed, the agreed purpose has been acheived, or when the party mutually agrees
to end it. It also ends when the bailed propery is destroyed or damaged so badly it is not fit for the intended purpose.
Death, insanity, or bankruptcy of one pary can end the relation as well. However, if there is a contractual bailment
for a fixed period, death nor incapacity ends the relation.
BAILMENTS!
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