- At common law, he is liable as a bailee and hence should take much care of the goods as a man of ordinary prudence would take care of his own goods.
- He is liable as an insurer for any loss or damage caused to the goods whether by his negligence or not. But the following are the exceptions:
a) Act of Nature: He is not liable if the loss of goods is caused by unforeseen circumstances beyond his control and contemplation, such as cyclone lighting etc.
b) Alien Enemies: He is not liable for the loss of goods caused by the foreign enemies during wars.
c) “Inherent Fire” in the Goods: He is not liable for inherent defect in the goods such as deterioration of perishable goods like fruits, vegetables etc.
d) Consignor’s Fault: He is not liable for the loss or damage of goods due to consignor’s fault such as bad packing etc.