How does the liability of a common carrier differ from that of an ordinary bailee with regard to property that is lost or damaged while in possession of the carrier?

Answer 1

A bailee must exercise due care not to permit injury to or destruction of the property by the bailee or by third parties. The degree of care depends on the nature of the bailment relationship and the character of the property. In a commercial bailment, from which the parties derive a mutual benefit, the law requires the bailee to exercise the care that a reasonably prudent person would exercise under the same circumstances. The liability of a common carrier approaches that of an insurer of the safety of the goods being transported, except when loss or damage is caused by an act of God, an act of a public enemy, the acts or fault of the shipper, the inherent nature of or a defect in the goods, or an act of public authority. The carrier is permitted through its contract with the shipper, to limit its liability, provided the carrier gives the shipper notice of the limitation and the opportunity to declare a higher value for the goods.