A Written Agreement Is Required For All Bailments


The basic rule is that the lease is supposed to return the goods on bail to its owner when the leaseee time is over for possession of them, and it is considered liable if the goods are not returned. But the fact that a bailee has accepted the delivery of goods does not mean that it is responsible for their preservation, no matter what. The Bail Bond Act is not considered a standard of absolute liability: the bailee is not an insurer of the safety of goods; their responsibility depends on the circumstances. If no personal delivery is required (for example. B as with rail), states use different approaches to determine when the carrier`s liability ends. The most popular intra-state approach is that the carrier remains fully responsible for the goods until the recipient has been informed of its arrival and has had the opportunity to take possession of it. The carrier`s absolute liability ends when it has delivered the goods to the recipient`s home or headquarters, unless the contract decides otherwise (as is often the case). Some carriers, such as railways and shipping lines, are not required to deliver the goods to the recipient (rail lines and oceans do not route the carrier to the recipient`s door). Instead, recipients must receive delivery to the pier or to another mutually agreed location or set by Densitor.

The fact that Kodak or Hoosier breached the lease agreement by negligently losing all four roles in the film was justified in the agreed de facto agreement. Therefore, the next question is whether either both Hoosier or Kodak can limit their liability as expressed on film packages and receipts…. Any ownership document, including a storage entry and bill of lading, is negotiable or becomes negotiable if the goods are to be delivered on its terms “to the owner or order” of a designated person. Single Code of Trade, Section 7-104(1) (a). All other securities are non-negotiable. Suppose a bill of lading indicates that the goods are shipped to Tom Thumb, but they must not be delivered unless Tom signs a written order to be delivered. In accordance with Section 7-104 (2), this is not a negotiable title. A negotiable title document must carry words such as “Deliver to the Bearer” or “Delivery on behalf of Tom Thumb.” It is the “magic words” that create a negotiable document.

The parties left open the question of whether the limitation of liability clause was valid and applicable. Calvin Klein argued in the District Court, as here, that the limitation clause was not enforceable for two reasons: there is no agreement between Calvin Klein and Trylon on the limitation of liability; And if such an agreement existed, public order would prevent its application because of Trylon`s gross negligence.