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Lila Gives Her Watch to Josh for Repair

Question 42

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Lila gives her watch to Josh for repair. Josh has Lila sign a work order that says that Josh's maximum liability in case the watch is lost or damages will be $100. Josh is unable to repair the watch himself, and so takes it to Fritz who specializes in repair of watches of this type. Unfortunately Fritz dropped the watch down a heating duct, and it cannot be found. The value of the watch was $2000. Fritz has offered to pay Lila $100, but she claims he is responsible for the value of the watch. Is she correct?

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A relationship of bailment exists betwee...

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