New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Register

    Question

    What are the responsibilities of the bailor regarding

    faults in the goods bailed as per the Contract Act?
    A 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
    B 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
    C 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
    D The bailor must inform the bailee of any known defects in the goods if those defects could interfere with their use or pose risks. If the bailor doesn't disclose these faults, they are responsible for any resulting damage Correct Answer Incorrect Answer
    E None of the above 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.

    Practice Next