Limitation of Liability for Gratuitous Bailments

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US-1340982BG
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Description

A gratuitous bailment is a type of bailment in which the bailee receives no compensation. An example would be borrowing a friend’s car. A gratuitous bailee is liable for loss of the property only if the loss is caused by the bailee's gross negligence. Therefore a lower standard of care is imposed upon the bailee in a gratuitous bailment.

Limitation of Liability for Gratuitous Ailments is a legal doctrine that limits the liability owed by a sailor to a bailee when the ailment is gratuitous, or without remuneration. This limitation of liability applies to the bailee who has been given possession of an item without the expectation of being paid for it. Generally, the sailor is not liable for any damages to the bailed item, unless those damages are caused by intentional or grossly negligent acts on the part of the sailor. The types of Limitation of Liability for Gratuitous Ailments are: 1. Negligence: A sailor may be liable for damages caused by their negligence, but only up to the extent of the value of the item bailed. 2. Intentional Acts: A sailor may be liable for any damages caused by intentional acts, even if the damages exceed the value of the item bailed. 3. Gross Negligence: A sailor may be liable for any damages caused by gross negligence, even if the damages exceed the value of the item bailed. 4. Strict Liability: A sailor may be liable for any damages caused by strict liability, even if the damages exceed the value of the item bailed.

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FAQ

Liability of a Bailor The bailor has an obligation to take possession of the commodities after the original purpose for which they were bailed has been satisfied. The bailor is obligated to reimburse the bailee for any expenses incurred as a result of the goods' defective title.

The exceptions to absolute liability of special bailees are (1) an agreement between the parties that is reasonable, (2) an act of God that causes the damage, (3) an act of a public enemy that causes the damage, (4) an act of a public authority that causes the damage, (5) fault on the part of the bailor, and (6) damage

A bailment allows an owner of a personal property to transfer possession of it to another individual for any one of the following purposes, EXCEPT: lease. An agreement reached between a bailor and a bailee is a: bailment.

Three elements are generally necessary for the existence of a bailment: delivery, acceptance, and consideration. Actual possession of or control over property must be delivered to a bailee in order to create a bailment.

Limits of Bailee Liability Normally the restriction is on the value of the property (i.e., so much per piece or per pound). For the purposes of the bailment agreement, the bailor may agree to accept a limited dollar value for the property that is less than its real value.

Duty of Gratuitous Bailor:- a) To disclose Known faults:- It is the first and foremost duty of the Bailor to disclose the known faults about the goods bailed to the Bailee. If he does not make such disclosure, he is responsible for any damage caused to the Bailee directly from such faults.

Strict liability usually applies to minor criminal offenses but does include possession crimes and statutory rape. In a criminal case, strict liability may result in a lighter punishment. However, it does not alleviate the liability, even if the defendant didn't know about the crime.

Regardless of who benefits from the bailment and what standard of care the bailee must use, all bailees are held to strict liability when it comes to redelivering the property to the true owner.

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Limitation of Liability for Gratuitous Bailments