New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    What are the responsibilities of the bailor regarding

    faults in the goods bailed as per the Contract Act?
    A The bailor must disclose any faults in the goods to the bailee only if the bailor is aware of them and if the faults materially interfere with the use or expose the bailee to extraordinary risks. If the bailor fails to disclose such faults, they are liable for any damage caused directly by these faults Correct Answer Incorrect Answer
    B The bailor is responsible for damage arising from faults in the goods bailed only if they were aware of the faults and the goods were bailed for hire Correct Answer Incorrect Answer
    C The bailor is not required to disclose faults in the goods to the bailee, regardless of whether the goods are bailed for hire or not Correct Answer Incorrect Answer
    D The bailor is liable for damage arising from faults in the goods only if the faults were present when the goods were bailed, regardless of the bailor's knowledge Correct Answer Incorrect Answer
    E The bailor must disclose all known faults in the goods, regardless of whether the faults interfere with use or cause extraordinary risks, to avoid any liability Correct Answer Incorrect Answer

    Solution

    Section 150.Bailor’s duty to disclose faults in goods bailed—The bailor is bound to disclose to the bailee faults in the goods bailed, of which the bailor is aware, and which materially interfere with the use of them, or expose the bailee to extraordinary risks; and if he does not make such disclosure, he is responsible for damage arising to the bailee directly from such faults. If the goods are bailed for hire, the bailor is responsible for such damage, whether he was or was not aware of the existence of such faults in the goods bailed.

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