Which of the following are correct in the case of a contract of bailment?
A. The person who delivers the goods is called the bailee.
B. If the bailee does any act inconsistent with the conditions of bailment, the contract is void.
C. A gratuitous bailment is terminated by the death of either the bailor or the bailee.
D. The bailee is bound to take care of the goods bailed.
E. The bailee has no general lien.
Choose the correct answer from the options given below:

Correct option is D

Statement A is incorrect: The person who delivers the goods is called the bailor, not the bailee. The bailee is the one who receives the goods.

Statement B is incorrect: If the bailee does an act inconsistent with the terms of bailment, the bailor may terminate the bailment, but the contract does not automatically become void.

Statement C is correct: As per Section 162, a gratuitous bailment (without reward) is terminated by the death of either the bailor or the bailee.

Statement D is correct: Under Section 151, the bailee is bound to take as much care of the goods bailed as a man of ordinary prudence would take of his own goods.

Statement E is correct: The bailee does not have a general lien, unless specifically authorized. He has a particular lien as per Section 170, for lawful charges due on the goods.

Information Booster:
A general lien is available only to certain professionals like bankers, attorneys, wharfingers, etc., not to a bailee unless by contract.
Particular lien allows retention of goods only for charges related to those very goods.