What happens if a bailee breaches the duty of ordinary care?

Prepare for the General Insurance Level 1 Exam with flashcards and multiple choice questions. Each question includes hints and explanations to help you succeed. Ace your exam now!

A bailee has a legal obligation to take care of the property entrusted to them by another party, known as the bailor. When a bailee breaches the duty of ordinary care, it means that they failed to manage or protect the property with the reasonable level of care expected under the circumstances. This breach can lead to negligence.

When the bailee does not exercise ordinary care and damages occur as a result, they can indeed be held liable for any loss or damage caused by that negligence. Liability arises because the bailee's failure to properly safeguard the property goes against the terms of the bailment agreement, which typically implies a duty to act responsibly with the property.

In contrast, the other options suggest scenarios that do not align with the principles of bailee liability. For example, claiming automatic non-liability would negate the responsibility inherently held by a bailee for carelessness. Similarly, an exemption claim would generally not be valid if negligence is proven. Lastly, while providing evidence of the care taken might be relevant in understanding the situation, it does not negate the fact that negligence occurred if the duty of ordinary care was breached. Therefore, the correct understanding is that a bailee could face liability for losses incurred due to their failure to exercise ordinary care.

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