Indian Contract Act,1872

Act No : 9

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Section : Bailor's duty to disclose faults in goods bailed

150.Bailor's duty to disclose faults in goods bailed. The bailoris bound to disclose to the bailee faults in the goods bailed, ofwhich the bailor is aware, and which materially57interfere with the use of them, or expose the bailee to extraordinaryrisks; and if he does not make such disclosure, he is responsible fordamage arising to the bailee directly from such faults. If the goods are bailed for hire, the bailor is responsible forsuch damage, whether he was or was not aware of the existence of suchfaults in the goods bailed. Illustrations (a)A lends a horse, which he knows to be vicious, to B. He doesnot disclose the fact that the horse is vicious. The horse runs away.B is thrown and injured. A is responsible to B for damage sustained. (b)A hires a carriage of B. The carriage is unsafe, though B isnot aware of it, and A is injured. B is responsible to A for theinjury.

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