Standard of Care – Bailee’s Duties under Indian Contract Act, 1872
Standard of Care
Standard of diligence required is that of average prudent person in respect of their own goods
of the same bulk and value in similar circumstances;
even in cases she has contracted herself out of her own negligence, bailee has still to show
that she took as much care as an person of ordinary prudence. ( also depends on cases by
cases basis and quality and type of goods).
Other Duties
Bailee must take reasonable care of goods even after the expiry of bailment period. If bailee
doesn’t want to keep the goods any longer, and wants the bailor to collect them within a
specified time, or wants to dispose the goods off, the bailee must send a notice to the bailor.
Bailee cannot escape liability.
Liability for Negligence of Servants
A bailee’s liability extends to damage caused by the negligence of his servants acting in the
course of their employment about the use or custody of the thing bailed; of their acts of fraud
or wrongful acts, provided that those acts were committed by them within the apparent scope
of their authority either in the supposed interest of their principal or master or in the course of
their employment.
Immaterial whether the servant acted negligently, dishonestly or fraudulently, master (bailee)
held liable.
Bailee not liable – when unforeseen circumstances beyond control of bailiee. (such as
destruction caused to bailed grain due to “unknown and unprecedented in the annals of
Agra”.
Burden of proof : The onus is on the bailee to prove that she had taken necessary
precautions and care required of her under the law; that she has taken reasonable care to
avoid the damage which was reasonably foreseeable or all reasonable precautions to obviate
the risks which could be reasonably apprehended. The onus is on the bailee also to prove the
absence of any casual connection between a negligent act on her part and the loss or
damage to the goods bailed.
Section 152) Bailee when not liable for loss etc., of thing bailed –
The bailee, in the absence of any special contract, is not responsible for the loss,
destruction or deterioration of the thing bailed, if he has taken the amount of care
described in Section 151.
Standard of Care
If bailee has taken standard of care of an average prudent person, and took as much care of
the goods as a person of ordinary prudence of her own goods, under similar circumstances,
of her own goods of the same quality and value.
Special degree of care is required from carriers, motor cab drivers and the like. A motor car
repairer is required to possess the skill, and the machinery and tools for the purpose. She
must take care to see that the places were the goods are kept are fit for custody.
Measure of damages : damages recoverable, generally equivalent to the value of the actual
goods lost. Can also include damages for loss of use of the goods, or profits lost because of
their destruction.
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