Risk of loss during a bailment, in the absence of contract or negligence by the bailee, lies on:

1. Default rule: ownership remains with the bailor, who bears the residual risk if the bailee has not been negligent. 2. Bailee is liable only if he failed in the duty of care. 3. Hence (B). _Source: ICAI BoS CA Inter Paper 2 — Indian Contract Act 1872_