A gave some goods to B, and asked B to store them in a warehouse for a period of time and clean them regularly. A agrees to pay B a fee for the use of the warehouse and a fee for the cleaning, and B agrees not to retain the goods under any circumstances once the contract expires. Upon expiry of the contract, A demands that B hand over his goods. Can B retain A's goods until A pays him the agreed fees?

All India Bar Examination (AIBE) 2-II Previous Year Question Papers with Answers

Practice Mode:

27.

A gave some goods to B, and asked B to store them in a warehouse for a period of time and clean them regularly. A agrees to pay B a fee for the use of the warehouse and a fee for the cleaning, and B agrees not to retain the goods under any circumstances once the contract expires. Upon expiry of the contract, A demands that B hand over his goods. Can B retain A's goods until A pays him the agreed fees?

Principle :

If the bailee, in accordance with the purpose of the bailment, renders any service involving the exercise of skill or labour in respect of the bailed goods, the bailee has, in the absence of a contract to the contrary, a right to retain the bailed goods until the bailee receives due remuneration for the services rendered in respect of the goods.

A: B can retain the goods till the agreed fees are paid as he has provided A with a service by storing and cleaning his goods.

B: B cannot retain the goods as mere storage and cleaning of A's goods does not involve any skill or labour.

C: B can retain the goods only if A refuses to pay both the agreed fees.

D: B cannot retain the goods as he expressly agreed not to do so in the contract even if he is not paid either of the fees.

E: B can retain the goods until he is paid for the cleaning of the goods as that involved labour but not after that even if he is not paid for the storage of the goods.

The answer is: D

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Explanation

D: B cannot retain the goods as he expressly agreed not to do so in the contract even if he is not paid either of the fees.

Explanation:

In this scenario, B and A entered into a contract with specific terms. B agreed to store and clean A's goods in exchange for fees, and both parties agreed that B would not retain the goods under any circumstances once the contract expires. This agreement is binding, and B is obligated to adhere to its terms.

Since the contract expressly states that B cannot retain the goods, even if A has not paid the agreed fees, B cannot hold onto A's goods until payment is made. The terms of the contract prevail, and B must comply with those terms, which do not allow for the retention of the goods.