Source: ICAI Module5 Marks
Back to Law List

Question Scenario

A bails his jewellery with B on the condition to safeguard it in a bank’s safe locker. However, B kept it in safe locker at his residence, where he usually keeps his own jewellery. After a month all jewellery was lost in a religious riot. A filed a suit against B for recovery. Referring to provisions of the Indian Contract Act, 1872, state whether A will succeed.

Estimated Writing Time: 9 mins Try in Practice Mode

Suggested Answer

According to section 152 of the Indian Contract Act, 1872, the bailee, in the absence of any special contract, is not responsible for the loss, destruction or deterioration of the thing bailed, if he has taken reasonable care as required under section 151.\nHere, A and B agreed to keep the jewellery at the Bank’s safe locker and not at the latter’s residence (i.e. B’s residence). Thus, B is liable to compensate A for his negligence to keep jewellery at his (B’s) residence.

Exam Strategy Tip

When answering law questions in the CA Foundation exam, follow the "Provision -> Facts -> Conclusion" structure for maximum marks. Ensure to state the relevant sections where applicable to earn bonus marks from the evaluator.

Ready to Practice More Law Cases?

Test your knowledge under timed conditions in our dedicated Writing Practice Mode. Get a feel for the real exam pressure.

Enter Writing Practice