Property: Bailment and Goods Essay example

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Bailment Answer Guide
Parties: X v Y
Jurisdiction: Told on the facts the events happened in Queensland (‘Qld’)/would have to assume the events happened in Queensland (‘Qld’) for Qld law to apply
Definition: A bailment exists where one person (bailee) takes possession of goods of another (bailor) voluntarily and knowingly

Need to ask whether or not we have to go through the elements of bailment, we didn’t in tutorials.

Classify The Parties
X is the bailee, Y is the bailor, Z is the sub bailor etc.
Specific kind of bailment?
There are a number of specific bailments recognised at law. The relevant on to the case here is:
Commercial bailment
The bailment on the facts is a commercial bailment as there has been:
A Deposit: safekeeeping - depositing goods for a fee is a commercial bailment
Work and labour: taking dog to vet is a commercial bailment
A Pledge: pawn brokers - bailments exist here
Hire/ hire purchase - hiring car is a commercial bailment. Hirer of goods has right to buy the item at the end of bailment
A lease of goods –
Consignment for sale
Reservation of title

Gratuitous
The bailment on the facts is a gratuitous bailment, as there has been:
A Deposit for safe keeping; even without the bank charging a fee, they are still a bailee
Loan of goods: loaning of car is a bailment
Work and labour on goods: even if the work is performed without a charge, there’s a bailment
Finding lost goods: this is a gratuitous bailment

Supply of goods
In this case, the bailment is one of a supply of goods as there has been a:
Lease of goods from [lessor] to [lessee] - under a lease of goods the lessor retains ownership rights, lessee gains possessory interest only.
Hire/ hire purchase
Consignment for sale - referred to as floor plan or display plan financing
Reservation of title (generally occurs where there is an agreement to deliver the goods and have them paid for in the future)
Services To Goods
In this case, the bailment is one of a service to goods as there has been a:
Transport of the goods
Storage of the goods
Repair of the goods
Cleaning of the goods
Bailment for a term?
A bailment for a term lasts for definite period of time. The bailment lasts as long as it takes for the purpose of the bailment to be completed. The bailor’s right to possession is suspended for duration of bailment and the bailee has possession (including a right to possession) come back and add onto this

If the issue relates to third parties in a bailment for a term: Bailor: In a bailment for a term, if the chattels are destroyed or permanently damaged by a third party, the bailor has an action on the case against the third party: Goodwin v Ron Heath Tyre Service

Bailee: In a bailment for a term, if the chattels are destroyed or permanently damaged by a third party, the bailee has an action against the third party as the bailee’s possessory interest has been interfered with: Goodwin v Ron Heath Tyre Service

Bailment at will?
A bailment at will lasts indefinitely and can be terminated at any time by the bailor. The bailment generally lasts until bailor asks for their things back. The bailor has a right to immediate possession against the bailee (can as for it back at any time)
If the issue relates to third parties in a bailment at will:
Bailor: In a bailment at will, a bailor has a right to immediate possession of goods that have been interfered with, and may also sue in conversion or detinue.

Bailee: In a bailment at will, if the chattels are destroyed or permanently damaged by a third party, the bailee has an action against the third party as the bailee’s possessory interest has been interfered with: Goodwin v Ron Heath Tyre Service – I think the bailee’s rights against a third party in a bailment at will are exactly the same as their rights for a bailment for a term.

Have any common law duties been breached?
The common law imposes a number of duties upon bailees. The…