Tips for Handling Non-Return or Damaged Goods as a Bailor

What should a bailor do when their goods are not returned or are returned in a damaged condition?

A) Bailor must satisfy the court that the standard of care was not maintained

B) Bailor must prove that a bailment existed and show his loss

C) Bailee's liability will be limited by the existence of an exemption clause

D) Bailee will not be liable if it was a gratuitous bailment as there was no consideration

Answer:

The correct answer is option B.

When a bailor's goods are not returned or are returned in a damaged condition, the bailor must prove that a bailment existed and show his loss. Let's break down the steps to handle this situation:

1. Understanding the Terms

- Bailor: The person who owns the goods and entrusts them to the bailee.

- Bailee: The person who receives the goods and is responsible for their care.

2. Establishing the Bailment and Loss

a. Bailment: The bailor needs to prove the existence of a legal relationship with the bailee regarding the goods, typically through evidence of possession transfer.

b. Loss: The bailor must demonstrate their loss due to the non-return or damage of the goods, often with proofs of value or repair costs.

3. Providing Evidence

The bailor's responsibility is to present sufficient proof to support the claim, such as receipts, contracts, or any relevant documentation related to the bailment and loss.

Conclusion: The bailor's course of action when facing non-returned or damaged goods is to establish the bailment existence and demonstrate the loss incurred. This involves providing evidence of the bailment and the value of the goods or repair/replacement costs.