Which of the Following Statements Is True of Bailments

question 84

Multiple Choice

Which of the following statements is true of bailments?

• A) The person who transfers possession of personal property to another is the bailee.
• B) If the bailment is for the mutual benefit of both parties, the bailee is liable for damage to the property caused by the bailee's gross negligence.
• C) If the bailment is for the mutual benefit of both parties, then both the bailor and the bailee share responsibility for the damages due to negligence.
• D) The parties to a contract cannot limit the liability of the bailee.

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Definitions:

Mortgage

A legal agreement by which a bank or creditor lends money at interest in exchange for taking title of the debtor's property, with a clause for voiding the agreement upon repayment.

Discharged

In legal terms, released or freed from an obligation, duty, or liability.

Incidental Beneficiary

A third party who may benefit from a contract between two other parties, albeit unintentionally and without the legal right to enforce the contract terms.

Enforce Agreement

The legal process of ensuring that the terms of a contract are carried out as agreed upon by the parties.