Bailment is different from a contract of sale or a gift of property; it only consists of the transfer of possession and not ownership. To form a bailment, the bailee should both plan to own, and essentially physically possess, the bailable chattel. Bailment is a characteristic universal law concept though comparable concepts exists in civil law .Additionally, distinct from a lease or rental, where ownership is with the lesser but the lessee is permitted to use the chattels, the bailee is in general not allowed to utilize the property while it is in his custody (Randall, 4).
There are three types of bailment first, bailment for the advantage of both the bailer and bailee (Randall, 6). A bailment for the mutual profit of the parties is formed when there is a trade of performances between the parties, for example the repair of an item. In such a case of mutual benefit, the bailee must take extraordinary care of the bailed property. A bailee who fails in doing so may be held legally responsible for any indemnity incurred from such negligence
Second type of bailment is for the exclusive benefit of the bailor. The bailor solely benefits from a bailment when a bailee is gratuitous. In such a case, the bailee has a lesser duty to care for the property and is financially responsible only if he or she has been foully negligent or has acted in bad faith in dealing with the property.
Randall (5) states that third is bailment for the lone benefit of the bailee. A bailment is created whereby the bailee solely benefits from the bailment for example the loaning a book from a library. In disparity, the bailee who solely benefits must exercise extraordinary care for the property. The benefactor can make use of the property only in the mode stipulated by the conditions of the bailment. The bailee is accountable for any damages to the property.
There are several possessory and non possessory ways of owning property. Persons may own chattels directly. In particular society’s only adult men may possess property in others property is matrilinear and inherited by the son from the mother. Commonly, men and women can possess assets without limitations and restrictions at all. Another way is through structured ownership entities. Historically, governments (nations) and religious associations have owned possessions (McKendrick, 90). These entities exist first and foremost for other purposes than to own or operate property therefore they may have no apparent regulations concerning the disposition of their assets. To own and operate property, structures have been fashioned in many societies historically. The variation in how they deal with members’ rights is a vital factor in shaping their kind. Cooperatives, partnerships, corporations, trusts, condominium associations are some of the myriad of structured ownership each type consisting of subtypes. To determine how assets are to be utilized, shared or treated, rules and regulations may be legally forced or adopted internally or decreed.
Another means of possession is having liability for the group or for others in the group. Ownership involves responsibility, for dealings regarding the property. Since the entity is separate and distinct from others, if a problem occurs which leads to a enormous liability, the individual is sheltered from losing more than the value of that one property. A structured group suitably regarded as an entity by law may not shield members from being personally liable for partners’ dealings. “Court decisions against the entity itself may lead to unlimited legal responsibility for each and every member” (Randall, 5). An example of this state is a professional partnership (e.g. law practice) in some jurisdictions.
Sharing of gains, this applies to entities with an associate focus which will give monetary surplus back to members in respect to the amount of financial goings-on that the member generated for the entity. Entities having share voting rights that rely on financial capital distribute surplus between shareholders with no consideration to any other contribution to the entity. Entities with a focal point of providing service in perpetual do not distribute financial surplus; they retain it (McKendrick, 70).
Sharing of usage, the owning organization makes rules governing use of property; each property may include areas that are made accessible to any and every member of the group to use. When the group is an entire nation, the same principle applies regardless whether the property is small or large.
Health insurance is defined as insurance against the risk of acquiring medical expenditure. By approximation of the overall risk of health care expenses, an insurer can build up a custom finance structure, to guarantee that funds are accessible to pay for the health care benefits specified in the insurance contract. A health insurance policy is an agreement involving an insurance company and a person or his sponsor. The contract can be renewed yearly, monthly or be for life. The nature and amount of health care expenses that will be covered by the health insurance company are stated in advance, in a member agreement.
According Samuel (35), the individual insured person’s obligations may take several forms. Firstly, premium, the sum the policy-holder or his sponsor for example an employer pays to the health plan to purchase cover for health. Secondly, deductible, the amount that the insured must pay out-of-pocket prior to the health insurer pays its share of payment Coinsurance is when instead of, or additionally, paying a fixed amount up front, the co-insurance is a proportion of the full amount cost that insured person may also pay. Exclusions are that not all services are sheltered. The insured is normally expected to pay the full cost of services not covered at their own expense.
Vehicle insurance is cover acquired for cars, trucks, and other road vehicles. Its main use is to provide security against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefore. Vehicle insurance can cover some or all of the following items: The insured party (medical payments), the insured vehicle (physical damage), third parties (car and people, property damage and bodily injury), third party, fire and theft, in some jurisdictions coverage for injuries to persons riding in the insured vehicle is available without regard to fault in the auto accident (Samuel, 36)
Different policies specify the circumstances under which each item is covered. For instance, a vehicle can be insured against fire damage, theft or accident damage independently. A deductible, also referred to as an excess payment, is a predetermined payment that should be paid each time a vehicle is repaired through an automotive insurance policy (McKendrick, 74). An obligatory excess is the least amount excess payment the insurance company will agree to on the insurance policy. Minimum excesses differ in accordance to the personal details, driving record and insurance company. To lessen the premium, the insured may offer to pay a high excess than the required excess demanded by the insurer. The voluntary excess is the additional amount over and above the required surplus agreed to be paid in the event of a claim on the policy.
Life insurance is an agreement between the insured and the insurer, whereby the insurer agrees to pay a selected beneficiary amount of money after the death of the insured individual. According to the contract, other happenings such as critical illness or terminal illness may also prompt payment. As a result, the policy holder promises to pay a predetermined amount regularly or in lump sums. The value for the policy owner is the contentment with the knowledge that the death of the insured person will not cause financial suffering.
Life policies are lawful contracts and the terms of the contract illustrate the restrictions of the insured events. Particular exclusions are habitually written into the agreement to bound the liability of the insurer; some examples are claims involving to civil commotion, war, suicide and riot. Life-based contracts can be divided into two broad categories: protection policies which are designed to offer a benefit in the occurrence of specified event, on average a lump sum payment. An ordinary structure of this design is term insurance and secondly investment policies this is where the main purpose is to enable the expansion of capital by ordinary or single premiums. Common types are whole life, universal life and variable life policies.
Intestacy is the situation of the estate of a person who dies owning property devoid of having made a legitimate will or other binding declaration. Alternatively where such a will or declaration has been made, but only applies to part of the estate, the left behind estate forms the Intestate Estate. The law of intestacy, also known as intestate succession statutes, is the body of law that institute who is permitted to the property from the estate under the rules of inheritance. Married or civil partners and some other close relatives are the ones who can take over according to the rules of intestacy. If a will is crafted but it is not legally applicable, the rules of intestacy settle on how the estate will be shared out, not the wishes articulated in the will (Finch, 36).
Alternatives to intestacy include: craft a will, joint owning of assets, Create a trust to own assets and evade probate. Probate happens once named in a will as an executor; apply for probate to deal with the estate (Finch, 34). One technique is called per capita distribution. All the surviving relatives are identified and the properties of the deceased that stay behind after probate of the estate are divided evenly among the number of survivors, the second technique is known as per stirpes distribution. Here, all the relations are identified but the right to receive anything from the estate, the percentage received depends on the proximity of the relationship.