Canadian Business Law, 4th Edition: Personal Property Bailment

Personal Property

• A bailment is a legal relationship that arises when personal property is borrowed, rented, stored, or found by a person other than its owner.
• There are three types of bailments:
  • Lucrative bailment: involves payment or other forms of compensation.
  • Constructive bailment: the bailor loses personal property, which comes into the possession of the bailee.
  • Gratuitous bailment: no payment or other form of compensation is involved.

Real Property

• Fee simple: ownership rights in land where the owner can do what they want, including transfer, sell, and dispose of it.
• Life estate: interest in land for the duration of a person's life, and where ownership rights transfer automatically to another upon death.
• Easement: right to use land of another for a specific purpose.
• Leasehold interest: temporary right to occupy real property.

Agreements of Purchase and Sale

• Conditions precedent: conditions that must be met before buying and selling real property, such as conditional on financing or environmental audit.
• Common warranties: promises made by the seller, such as no toxic wastes on the property or no asbestos in buildings.
• Closing date: the time specified in the agreement when real property is legally transferred.

Transfer of Ownership

• Historically, the land registry system was established for the registration of title to lands.
• Ontario now uses the land titles system.
• Mortgage: a loan secured by real property, giving the lender the right to sell the property and recoup any loss if the borrower fails to repay the loan.

Commercial Leases

• Common lease provisions:
  • Term of the lease (fixed or periodic tenancy)
  • Rent
  • Repairs and maintenance
  • Use of premises
  • Sublets
  • Assignment
  • Fixtures

Insurance

• Types of property-related insurance commonly used by businesses:
  • Property loss
  • Liability for property loss
  • Occupiers' liability

Property Law

• Property law is a collection of rules that confer rights of ownership, possession, and transferability over things.
• Property ownership generally includes the right to:
  • Possess and use property
  • Prevent others from possessing it
  • Transfer property rights to others

Importance of Property Law for Business

• Property law defines areas where a business may be vulnerable to loss.
• It sometimes allows ownership and possession to be split.
• It promotes the lending and borrowing of money.
• It allows innovation to flourish.

Explore the legal concept of bailment with respect to personal property, such as borrowing, renting, storing, and finding items. Learn about the different types of bailment including lucrative and constructive forms as discussed in the Canadian Business Law, 4th Edition.