Final answer:
Bailment is the correct term for when a person lawfully possesses someone else's personal property without the owner relinquishing title. This situation occurs under an agreement that the property will be returned or disposed of according to the owner's directions. Terms like conversion, repossession, and gift inter vivos describe different legal situations concerning personal property.Option B is the correct answer.
Step-by-step explanation:
When a person rightfully possesses personal property that belongs to someone else without the owner giving up title, it is called bailment. This legal term refers to a situation where the personal property is transferred to another party to be held, kept safe, or used under conditions without transferring the full ownership or title of the property. An example of bailment would be when you lend your car to a friend; you have transferred possession of the car, but you have not given up your ownership.
The concept of bailment aligns with the Principle of Justice in transfer, indicating that a person who acquires a holding from someone else who is entitled to that holding also becomes entitled to the holding. It's important to note that both parties must agree to the terms of the bailment, and the one who accepts the property (bailee) has a duty to return the property in a good condition once the purpose of the bailment is fulfilled.
Other terms like conversion, which refers to the wrongful exercise of control over another's personal property, or repossession, which entails the act of taking back property through legal means when a contract is breached, particularly in cases of installment-purchase contracts, are distinct from bailment. Gift inter vivos, on the other hand, describes a completely different situation where an individual voluntarily transfers property to another while still alive, without any consideration or compensation, and giving up title in the process.