Section 150: Bailor’s duty to disclose faults in goods bailed

Questions on this section

2 questions in 7 of our papers cite Section 150. Try these from the free papers:

1. 1. Under Section 150 of the Indian Contract Act, 1872, where goods are bailed for hire, the bailor is responsible for damage arising to the bailee directly from faults in the goods:

   A.only if the faults exposed the bailee to extraordinary risksB.only if the bailee had examined the goods before using themC.whether or not he was aware of the existence of such faultsD.only if he knew of the faults and failed to disclose them
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2. 2. Consider the following statements under Section 150 of the Indian Contract Act, 1872: 1. A lends B, free of charge, a horse which A knows to be vicious, and does not disclose this. The horse runs away and B is thrown and injured. A is responsible to B for the damage. 2. A bailor who fails to disclose such a fault is responsible for damage arising to the bailee from it indirectly as well as directly. 3. The bailor's duty is to disclose known faults which materially interfere with the use of the goods or expose the bailee to extraordinary risks. Which of the statements given above is/are correct?

   A.2 and 3 onlyB.1 and 3 onlyC.1 and 2 onlyD.1, 2 and 3
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