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A lends a horse to B free of charge. The horse bolts and throws B, causing injury. Under section 150 of…

A gratuitous bailor must disclose known faults that materially interfere with use or expose the bailee to extraordinary risk. Section 150 illustration (a) applies that rule…

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A lends a horse to B free of charge. The horse bolts and throws B, causing injury. Under section 150 of the Indian Contract Act, 1872, when is A liable for the injury caused by the horse's dangerous propensity?

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Answer and explanation

Correct answer B

A gratuitous bailor must disclose known faults that materially interfere with use or expose the bailee to extraordinary risk. Section 150 illustration (a) applies that rule to a lender who knows a horse is vicious and fails to warn the borrower.

Option feedback

Option A

Section 150 imposes the duty without requiring an express damages clause.

Option B

In a gratuitous bailment, failure to disclose a known fault exposing the bailee to extraordinary risk makes the bailor responsible for the resulting damage.

Option C

The statute applies a stricter rule to bailment for hire. This loan was free of charge.

Option D

The statutory issue is nondisclosure of the known fault and causation of injury. Physical control at the time is unnecessary.

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