(1) The bailee shall, take care of and protect
the goods bailed to him or her in accordance with the terms and
conditions specified in the contract and, reasonable care of goods,
as his or her own in the absence of such terms and conditions.
(2) Except as otherwise provided for in the contract, if any
goods bailed are lost, stolen, damaged, depreciated, deteriorated or
destroyed because of a disaster in spite of the reasonable care and
protection pursuant to sub-section (1), the bailee shall not be liable
to return such goods.
Provided that if the goods are lost, stolen, damaged,
depreciated, deteriorated or destroyed because of recklessness or
mala fide intention of the bailee or of his or her failure to take care
of or protect the goods according to the terms and conditions of the
contract, the bailee shall be liable to return the goods or pay an
amount equivalent to the price thereof to the bailor.
(3) If the bailee uses the bailed goods without
authorization to do so under, or in a manner contrary to the terms
and conditions of, the contract, the bailee shall pay compensation to
the bailor for any damage, loss, destruction or deterioration arising
to the goods from such use.
324
(4) Except as otherwise provided for in the contract, the
bailee shall not mix the bailor's goods with his or her own goods.
Provided that if the bailee, with the consent of the bailor,
mixes the goods of the bailor with his or her own goods, both
parties shall have an interest, in proportion to their respective share,
in the mixture thus produced and income accrued therefrom.
(5) If the bailee, without consent of the bailor, mixes the
goods of the bailor with his or her own goods, and the goods so
mixed can be separated, the title of the property in goods shall
remain in the parties respectively, but the bailee shall be bound to
bear the expenses for separation and the damage, if any, arising to
the bailor from the mixture.
(6) If the bailee, without consent of the bailor, mixes the
goods of the bailor with his or her own goods, and the goods so
mixed cannot be separated pursuant to sub-section (5), the bailor
shall have right in such goods.