CHAPTER XI PERSONAL PROPERTY LAW 1. Defined 2. Who may possess and own 3. Transfer of 4. Conditional sales 5. Chattel mortgages 1. Defined. Personal property includes all articles and things that may be taken possession of and carried with a person wherever he or she goes, such as chattels, money, things in action, and all written instruments themselves, as bonds. mortgages, promissory notes, and other evidences of investment or debt. It has no locality, as in the case of real property. The law of the owner's domicil determines any disposition or transfer thereof, unless there is some law of the country where it is found to the contrary. 2. Who may own. Every person is capable of owning personal property, and may take title thereto by gift, conveyance, bequest or descent. Aliens, although non-resident, may take such property. The property of an enemy alien however may be confiscated by the government. The absolute ownership of such property cannot be suspended by any limitation or condition, for a longer period than during the continuance and until the termination of not more than two lives in being at the date of the instrument of conveyance containing such limitation or condition; or, if the instrument disposing of such property be a last will and testament, then for not more than two lives in being at the death of the testator. In other respects limitations of future or contingent interests in personal property, are subject to the same rules respecting future estates in real property. This rule against perpetuities has been held not to apply to charitable or public uses, that is-property may be given for such purposes without limitation as to time. Personal property may be owned and held absolutely, or for life, or for a specified term. Corporations may take and own personal prop erty. 3. Transfer of. The term includes sale, assignment, conveyance, deed and gift. Every person capable of making a contract is capable of transferring personal property and vesting title in the transferee. Every agreement, promise or undertaking respecting personal property is void, unless it or some note or memorandum thereof be in writing, and subscribed by the party to be affected or charged therewith, or by his or her lawful agent, if such agreement, promise or undertaking: (1) By its terms is not to be performed within one year from the making thereof; (2) is made in consideration of marriage, except mutual promises to marry; (3) is a conveyance or assignment of a trust in personal property; (4) is a contract for the sale of any goods, chattels or things in action for a price of fifty dollars or more, and the buyer does not accept and receive part of such goods, or the evidences, or some of them, of such things in action; nor at the time, pay any part of the purchase price. In the case of sale at public auction, the entry, at the time, by the auctioneer in a sales book, of a memorandum specifying the nature and price of the property sold, name of purchaser and terms, is a sufficient memoranda to comply with the law and make the sale valid. A valid contract of sale is made by an interchange of correspondence and telegrams. Writing need only be signed by party obligated, and may be signed any time after the sale. In the case of a sale of goods, the delivery of a part is sufficient to make a binding contract between the vendor and vendee to deliver and to receive and pay for the balance, without any memoranda in writing. Contracts for sale and delivery of goods to be manufactured thereafter, do not come within the requirement above noted, but are contracts for work, labor and services and are enforceable, though oral, if to be completed within one year. Where a written instrument is made and executed evidencing title to personal property in the vendee, it is termed a bill of sale and delivery thereof entitles the vendee or purchaser to possession of the property sold. Transfer of negotiable paper, bonds, mortgages, stock, etc., is made by endorsement or written assignment In the case of an assignment of a mortgage on real property it should be recorded in the office where the mortgage is recorded. To effect and complete a gift of personal property, there must be an actual delivery thereof to the donee during the lifetime of the donor. A simple promise to give, or advising one that he or she is to have particular property after death of the then owner, does not amount to a gift and the intended donee is not entitled to and cannot obtain the property after the owner's death. That is so notwithstanding there be witnesses to satisfactorily prove the promise or attempted gift, for personal property cannot be given to another to be delivered after death except by will. A person cannot transfer his personal property to another in trust for his own use as against existing or subsequent creditors. Such a transfer will be void as against creditors. A transfer of personal property or any interest therein, or the income thereof, and any charge made thereon or against such income made with intent to hinder, delay or defraud creditors, or other persons in their lawful suits, is void as against such creditors and persons. The question of the existence of fraudulent intent in such cases is one of fact. Such a transfer is also void as against the heirs, successors, personal representatives or as signees of such creditors or purchasers. A man about to engage in business cannot convey his property to his wife voluntarily, without consideration, for the purpose of securing the same to the benefit of himself and family, in the event of losses occurring in such business. Such a conveyance is fraudulent, although not made with an intent to defraud existing creditors. A transfer is not fraudulent, necessarily, as against creditors, solely on the ground that it was without valuable consideration, if the purchaser had no previous notice of the fraudulent intent of his immediate vendor, or of the fraud rendering void the title of such vendor. A bona fide purchaser for a valuable consideration, without notice of fraudulent intent, obtains a good title. If a purchaser shows conveyance to have been made to him for a valuable consideration, the burden will rest upon a creditor of showing that such purchased had notice. A transfer of any portion of a stock of goods otherwise than in the regular and usual prosecution of the transferer's business, or the transfer of an entire stock in bulk, will be presumed to be fraudulent and void as against creditors of such transferer unless the proposed transferee shall, at least five days before the transfer, in good faith, make full inquiry of the transferer as to the names and addresses of all his creditors, and shall within such time notify such creditors personally or by registered mail of the proposed transfer. This provision, however, does not apply to transfers by executors, administrators, receivers, assignees for benefit of creditors, trustees in bankruptcy, or by any public officer under judicial process. |