First Principles of Business Law

The contents of a contract

7. Terms implied by law into particular kinds of contract

7.3. Contracts involving bailment

 

 

 

Read the facts and the question and then choose the best answer.

A buys 50 sacks of grain from B, a grain merchant. A asks B to keep the sacks until he can arrange for transport to take delivery. B agrees and stores the sacks in an old timber shed that has no locks. That night an intruder gains access to the shed through a hole in B's fence and steals the grain.

Is B in breach of a term imposed by law into his contract with A that, as a bailee, he must take care of A's goods?

(a) Yes. The law makes it a term of a contract that involves bailment that the bailee will care for the bailor's goods.

(b) No. The law does not makes a bailee contractually liable to care for the bailor's goods.

 

 

 

 

 

 

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