I run a public carrier company in our business on some occasions the goods given to us are lost. We also execute Agreements with our customers providing that we will not be liable for loss of damage. If our customer files a case against us for loss of goods, what is our liability?

I run a public carrier company in our business on some occasions the goods given to us are lost. We also execute Agreements with our customers providing that we will not be liable for loss of damage. If our customer files a case against us for loss of goods, what is our liability?

A common carrier in India is not merely a bailee as we understand and his liability against the loss or damage is more than what Sections 151, 152 and 161 of the Indian Contract Act 1872 provide. He is an insurer of the goods so to speak and in the absence of a special contract under Section 6 his liability is absolute. By entering into a special contract under Section 6 of the Act, the common carriers’ liability may either be governed by the Indian Contract Act 1872 or by the English Common Law.

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