Question

Claudio is a skilled craftsman employed by the Goldcasters Jewelry to make handcrafted jewelry. Working after his normal working hours and using materials he paid for himself, Claudio crafts a fine ring by skillfully weaving together strands of gold wire. He presents the ring to his fianc?e, Cheryl, as an engagement ring in anticipation of their forthcoming marriage. While visiting the restroom in a steak and ribs restaurant, Cheryl removes the ring so she can wash some barbecue sauce from her hands. In her haste to get back to her table, she leaves the ring on the washstand when she exits the restroom. Sandra, a part-time janitor for the restaurant, finds the ring and slips it into her purse. When Cheryl realizes she is missing the ring and returns to the restroom to look for it, neither the ring nor Sandra is still there. Later that evening, Sandra sells the ring to her cousin, Gloria, who gives her $200 for it. Several days later, Cheryl breaks her engagement to Claudio, telling him that she no longer loves him. Claudio asks Cheryl to return the ring, indicating that he intended for her to have it only if their engagement led to marriage. This situation raises a number of questions concerning rights and interests in personal property that will be discussed in this chapter. They include:

• Did Claudio make an effective gift of the ring to Cheryl? Or was it a conditional gift that he could revoke when Cheryl decided to call off the marriage?

• What was Sandra’s responsibility when she found the ring? Between Sandra and the restaurant, who had the better right to the ring?

• Did Gloria become the owner of the ring when she paid the $200 to Sandra? Does Cheryl have the right to recover the ring from Gloria if she finds that Gloria has it?

Answer 1

1. Claudio has made a conditional gift and ring should be returned to him as the conditional gift become effective only if the condition ie. marriage is fulfilled. It is not a case of compensatory gift or no fault is mentioned of any of the parties, In such a case, the giver should take the ring.

2. Law dictates Sandra to attempt to return the ring to the owner. In normal circumstances where someone's personal possession is found on unclaimed property, it becomes imperative for Sandra to attempt to find to owner and return the ring to her but if the ring is found on a private property like restaurant, she should enquire whether someone has lost a ring from the restaurant administration. So, Restaturant's right over ring is better than Sandra's.

3. No, As Cheryl found the object of her ownership, she has every right to recover the ring. If it is not destroyed, she can acquire the ring from Sandra and if it is destroyed, an appropriate compensation for the same can be provided.