Standard of Care by Bailee

 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.