Exam 15: Bailment and Leasing

For $5600,Jackstone Inc.agreed to repackage and ship nine container loads of toys from China.These containers from China were to be received during the next three months.Two containers arrived and were serviced according to the contract.The other seven containers never arrived and neither did any payment.What is Jackstone legally entitled to?

Identify which of the following statements correctly describes a hire-purchase agreement.

A gratuitous bailment is one where one party pays a nominal fee or gratuity as consideration for the other keeping personal property.

In relation to chattel leases,quiet possession means that the lessor will not interfere with the lessee's possession or use of the chattel so long as the lessee complies with the terms of the lease.

Generally describe why a business may be reluctant to purchase an item but rather entertain the option of entering into an operating lease?

An example of a gratuitous bailment for the benefit of the bailee would be

Some texts,like this one,separate most chattel leases from bailment,while others suggest that many forms of chattel lease are included in bailment.Based on the characteristics of both bailment and the majority of chattel leases,discuss whether the distinction between them should be maintained.

Sid asks his neighbour Carl to take care of his lawnmower while Sid is on holidays.While he's gone,Carl uses the lawnmower to mow his brother's lawn across town.In the legal sense,Sid is the ________ and Carl is the ________.

The relationship of bailment may occur without any contract between the bailor and the bailee.Explain,giving an example.

Miles acquires a power generator under a two-year lease with the manufacturer.After four months,Miles realizes he no longer needs the generator.He delivers the generator back to the supplier,hoping that his lease payments will stop,but to his dismay,he is informed that he will be expected to pay the remaining twenty payments.Will Miles legally be required to finish all the lease payments?