Case Study on Bailment:

At Hotel in Minnesota, a guest left a valuable ring with the desk clerk, with instructions for the ring to be delivered to a jeweler. The desk clerk lost the ring, so it was never delivered to the jeweler, and he never reported to either his employer, or the guest, that it had been lost. The guest sued the hotel as the bailee of the ring, as she had delivered possession of the ring to the hotel's employee for the purpose of having it delivered to the jeweler.

The hotel argued that, in order for a bailment to exist, there must be a mutual agreement between the parties. Since the hotel had never consented to become a bailee, it cannot be held responsible. The hotel also argued that, because it did not know the value of the ring in question, it was not a bailee. The hotel further argued that it received no consideration or benefit for taking care of the ring.

Discuss in detail that:

1. Was the hotel liable for the jewelry, and to pay the damages?
2. Was there a contract of bailment created in this case?
3. What was the role of the hotel's desk clerk who accepted the ring in this regard?
4. Was the good will generated when the clerk accepted the ring to be delivered to the jeweler for repair?