Multiple choice

Directions: Given below is a statement of legal principle, followed by a factual situation. Apply the principle to the facts and select the most appropriate answer among the three alternatives given. Encircle your choice.

Principle: A bailment is the delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned. In all cases of bailment the person whom the goods are delivered is expected to take as much care of the goods as a man of ordinary prudence would, under similar circumstances take of his own goods of similar nature.

Facts: Mrs. Basanti gave 25 gms of pure gold to M/s. Hirlalal Shroff and Company - a firm of jewelers to make two bangles of a particular design out of that gold. The jewelers kept the gold in an almirah in their shop. There was burglary in the shop and the gold given by Mrs. Basanti was stolen along with other jwellery belonging to the firm. The burglars broke open one of the shop windows. The firm had not employed a watchman to guard their valuables during the night. Now Mrs. Basanti brings an action against the firm for compensation.

  1. The firm of jewelers is not liable to compensate Mrs. Basanti because they took as much care as they took in respect of their own goods which is established by the fact that their own goods were also stolen along with the gold belonging to Mrs. Basanti.

  2. The firm is liable to compensate Mrs. Basanti because it failed to take as much care as a man of ordinary prudence ought to have taken in respect of the goods en-trusted.

  3. The firm is not liable to compensate Mrs. Basanti because it took reasonable care in respect of the goods entrusted to it and the burglary could not have been avoided under any circumstances.
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B Correct answer
Explanation

In bailment, the bailee (jewelers) must take the same care of goods as a person of ordinary prudence would take of their own similar goods. The jewelers failed to take reasonable precautions - no watchman, inadequate security. That their own jewelry was also stolen shows they failed to take even basic care. Under Section 148 of Indian Contract Act, they're liable for negligence as they didn't exercise due care.

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