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Under Section 159, if a bailor terminates a gratuitous bailment before the agreed period and the bailee's loss exceeds the benefit he derived, the bailor must:
AExtend the bailment
BForfeit the goods
CCompensate the bailee for the excess loss
DDo nothing
Answer & Solution
Correct answer: C. Compensate the bailee for the excess loss
Section 159 lets the bailor demand back gratuitously-lent goods at any time, but he must compensate the bailee for loss exceeding the benefit the bailee obtained.
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