1. Which duty does a bailor have in gratuitous bailment?
a) To pay rent b) To disclose known defects in goods c) To insure goods d) To act as guarantor of loss
Answer: b) To disclose known defects in goods Explanation: In gratuitous bailment, the bailor must reveal any known defects to protect the bailee.
2. If bailor delivers goods knowing them to be dangerous and fails to inform, who is liable for injury to bailee?
a) Bailee only b) Bailor only c) Both equally d) No one
Answer: b) Bailor only Explanation: The bailor is liable for damages caused by undisclosed dangerous goods.
3. When bailee mixes bailor’s goods with his own without consent, and separation is impossible, the bailee must:
a) Return goods in any condition b) Pay bailor for his goods c) Bear only 50% loss d) Deliver new goods
Answer: b) Pay bailor for his goods Explanation: If mixing without consent makes separation impossible, the bailee compensates the bailor for the loss.
4. Termination of bailment happens when:
a) Time agreed expires b) Purpose is accomplished c) Either party dies (in gratuitous bailment) d) All of the above
Answer: d) All of the above Explanation: Bailment ends when its purpose is complete, time ends, or in some cases, on death of a party.
5. Who is responsible for expenses in gratuitous bailment?
a) Bailee only b) Bailor only c) Both share equally d) As agreed by contract
Answer: a) Bailee only Explanation: In gratuitous bailment, the bailee bears the expenses for keeping goods.
6. The bailee must return goods:
a) Whenever he wishes b) After bailor’s demand or expiry of agreed time c) Only after being paid d) After signing fresh agreement
Answer: b) After bailor’s demand or expiry of agreed time Explanation: The bailee’s duty is to return goods on completion of purpose or demand, as agreed.
7. If bailee fails to return goods on time, he is liable for:
a) Only actual loss b) Reasonable compensation for loss or destruction c) Nominal damages only d) No liability if not negligent
Answer: b) Reasonable compensation for loss or destruction Explanation: The bailee is responsible for any loss or destruction of goods after wrongful retention.
8. When bailee returns goods, bailor must:
a) Pay agreed charges, if any b) Issue receipt c) Provide substitute goods d) None of the above
Answer: a) Pay agreed charges, if any Explanation: The bailor must pay lawful charges due to the bailee before taking back the goods.
9. Which of the following is an example of bailment for hire?
a) Giving a friend your watch to wear b) Leaving clothes at a paid laundry c) Depositing money in a bank account d) Selling old furniture
Answer: b) Leaving clothes at a paid laundry Explanation: Bailment for hire occurs when goods are delivered for a reward, like at a laundry or parking service.
10. If bailee’s work on goods is incomplete, his lien is:
a) Perfect and continues b) Lost c) Partial d) Enforceable in court only
Answer: b) Lost Explanation: A bailee can retain goods only after completing the work for which lien is claimed.
