Common use of Mysterious Disappearance Clause in Contracts

Mysterious Disappearance. GAC shall not be liable for loss of Goods that had been tendered to GAC for storage due to inventory shortage or unexplained or mysterious disappearance of Goods unless the Customer establishes that such loss occurred because of GAC’s failure to exercise reasonable care, in which case, damages are limited as per Section 12, above. Any presumption of conversion imposed by law shall not apply to such loss and a claim by the Customer of conversion must be established by affirmative evidence that GAC converted the Goods to GAC’s own use.