Generally speaking, real property sales are governed by the common law of contracts一-a body of primarily state case laws, while sales of personal property are governed mainly by the Uniform Commercial Code—a body of state statutory laws. The dominant component of a transaction determines whether the whole transaction is governed by the UCC or by the common law of contracts.

Ownership of tangible personal property is referred to as title* Title to most personalty is evidenced by possession. When a piece of personal property is not owned by others， one can obtain title to it merely by taking possession. For example，abandoned property is available to the general public, and the first to take possession of the abandoned property will become its owner. Mislaid and lost property are two other types of property in this connection. Property is mislaid when its owner intentionally places it somewhere but later forgets the location. Property is lost when it is accidentally placed somewhere. If one finds lost property, reports the finding to certain public officials, and it is not claimed after a certain period of time, one will usually become the owner. When one finds goods on the property of another person, if the goods were lost，the finder is entitled to possession; if the goods were mislaid, the owner of the property is entitled to hold the goods until the true owner returns for them.

The law of co-ownership of personal property is essentially the same as that of the co-ownership of real property. Thus personalty can be co-owned as tenancy in common 9 joint tenancy, tenancy by entirety or as community property.

Title to personal property can be transferred through purchase. It passes from the seller to the buyer when the parties execute a purchase contract. If the contract is a written one, it will often specify the time or place at which title passes. If one wants to generate evidence of the purchase of personalty* he might prepare a bill of sale to be signed by the parties. Ownership of certain classes of personalty is registered with governmental a-gencies. To transfer title to this type of personalty the certificate of title is signed by the seller > delivered to the agency, and then reissued in the name of the buyer.

Gifting process is another way to transfer ownership of personally. A gift it different from a purchase, because when one makes a gift he generally does not get something directly in return4. Mere promises to make gifts are generally unenforceable. Three elements are required to make a gift irrevocablet delivery, the intention to make a present gift9 and acceptance. Delivery can be actual or constructive ； intent means that the party transferring possession (the donor) intends to make a present gift. Acceptance means simply that the person receiving the gift (the donee) must indicate a willingness to eccept it.

Any creditor may establish rights in personal property analogous to those of a lien holder in realty by acquiring a security interest in the property5. A security interest, in personalty is created with a security agreement and in some cases with a security agreement and filing. The security interest gives the creditor (the securec party) the right, if the loan payments are not made as promised« to repossess the personal property, sell it, a .id use that money to pay the loan.

Answer the following questions :
1. What are the various ways of acquiring and transferring personal property?
2. What is required to establish a valid gift? Illustrate with examples.
3. What is a security interest in personalty?
4. Illustrate the differences between abandoned property and lost property.
5. Does a promise to make a gift in the future transfer ownership? Why?
6. Can personal property be co-owned? How?
7. What are the characteristics of personal property?
8. What are the common types of found property? Give examples to define each type.
9. What is the distinction between lost and mislaid goods?
10. How is security interest in personalty created?

Personal property comes in a variety of shapes, sizes, and values. It may be as large as an elephant or as small as a safety pin. It may be as valuable as the Hope Diamond or as valueless as the pulp of a carrot. Personal property is apersonal 99 because it can move with the person. This is readily observable with clothing and jewelry. However, items such as refrigergtors and boats, though personal property, are not as readily movable with the person. Nonetheless, they are “unattached”，and this is one trait that distinguishes personal from real property. Personal property may be acquired in a number of ways. Often, acquisition occurs by purchase, gift, or inheritance. Sometimes property is acquired by accession. Accession is a change or improvement to personal property by a nonowner. In some cases, accession occurs without the owner’s knowledge. For example, a thief steals an automobile and installs a new engine ： here, because the improver’s action is wrongful . the owner is entitled to the car with the new engine. In rare instances » title to the property may change as a result of an innocent accession. When one in good faith changes the nature of the property or greatly enhances the value of the property，that person may gain title to the property.