B LAW402 Chapter Notes - Chapter 20: Bailment, High Standard Manufacturing Company, Common Carrier
15 Mar 2016
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Exculpatory clause = a clause in a contract that limits or exempts a party from any liability for damage to the goods. Types of bailment: gratuitous bailment = the benefit of either the bailor or the bailee, or both, and is without monetary reward. The liability for loss or damage varies in respect to the benefits that each of the parties receives unless there is a fixed standard of care in the agreement. If the benefit is soley on the bailor then the liability for the bailee is minimal but they still must undertake a reasonable standard of care. They must take reasonable care in protecting the goods from foreseeable risk of harm. However, if the bailee is benefiting, the bailee is held liable for any damages but not reasonable wear and tear. The bailee must hold a standard of care that is seen as the industry standard.
