Minnesota Bailment Agreement with Bailee to Maintain and Care for Property, and Assume Liability for Damage or Loss
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FAQ
If the bailment is for the sole benefit of the owner (the bailor), the bailee is answerable only for gross neglect or fraud: the duty of care is slight.
The bailee is liable for any damages arising from their own negligence or the negligence of others who gain access to the item, for example, the item is stolen by an unknown third party while in the borrower's possession, or someone else uses the borrowed car while in the borrower's possession.
In either case reasonable disclaimers of liability are allowed. If the bailed goods need repair while in the bailee's possession, the usual rule is that ordinary repairs are the bailee's responsibility, extraordinary ones the bailor's.
It is well established now that Bailee will be liable for any loss or damage to the bailor which arises due to the negligence or lack of reasonable care of the goods bailed.
In a bailment for mutual benefit, the bailee must take reasonable care of the bailed property. A bailee who fails to do so may be held liable for any damages incurred from his or her NEGLIGENCE.
The bailee is not liable if the delay in delivering the goods or disposal of goods is due to default of others. Unexplained failure to return the thing bailed is presumed to be by the bailee's default;12And it would be presumed as his negligence.
The basic rule is that the bailee is expected to return to its owner the bailed goods when the bailee's time for possession of them is over, and he is presumed liable if the goods are not returned.