What obligation does the Bailee have regarding the care of the Bailor's property in a mutual benefit bailment?

In a mutual benefit bailment, the Bailee has a reasonable duty of care to protect and take care of the Bailor's property. This standard requires the Bailee to exercise the same level of care that a reasonably prudent person would use in similar circumstances. The rationale behind this duty is that both parties benefit from the arrangement: the Bailor provides property for the Bailee's use, and the Bailee typically pays for or benefits in some way from that use.

This reasonable duty of care is a higher standard than that of a low duty of care, which would apply in situations where the Bailee benefits very little from the arrangement and thus has less obligation to safeguard the property. In mutual benefit bailments, since both parties gain advantages, the expectation is for the Bailee to act with a heightened level of responsibility.

The Bailee does have a duty to maintain the property, but this does not extend to an obligation to improve the property, which is more typical of other relationships. Therefore, the Bailee's responsibility is focused on preservation and care rather than enhancement or alteration of the Bailor's property.