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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.
The bailee is liable for all injuries to the property from failure to properly care for or use it. Once the purpose of the bailment has been completed, the bailee usually must return the property to the bailor, or account for it, depending upon the terms of the contract.
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.
In a mutual benefit bailment, the standard of care is that of reasonable care. Failure to use reasonable care may subject the bailee to liability for any damages that may occur, unless the bailee limits its liability.
According to section 151, it is the duty of a bailee to take care of goods bailed to him. Bailee should take care of these goods as an ordinary man will take care of his goods of the same value, quality, and quantity.
The bailee is liable for all injuries to the property from failure to properly care for or use it. Once the purpose of the bailment has been completed, the bailee usually must return the property to the bailor, or account for it, depending upon the terms of the contract.
In a bailment for the sole benefit of the bailee, the bailee must use a high degree of care in taking care of the property bailed,must use the property only as agreed, and must return it when the bailment ends. The bailor has the right to have the property returned in a safe condition when the bailment ends.
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.
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.
When a bailor receives the sole benefit from the bailment, the bailee has a lesser duty to care for the property and is financially responsible only if he or she has been grossly negligent or has acted in bad faith in taking care of the property.