Site navigation

Under section 150 of the Indian Contract Act, 1872, which known fault in goods must a gratuitous bailor…

Section 150 requires a bailor to disclose known faults that materially interfere with use or expose the bailee to extraordinary risks. A bailor who fails to disclose such a…

Choose your answer

Under section 150 of the Indian Contract Act, 1872, which known fault in goods must a gratuitous bailor disclose because of its effect on the intended use?

Select one answer
Answer and explanation

Correct answer C

Section 150 requires a bailor to disclose known faults that materially interfere with use or expose the bailee to extraordinary risks.

A bailor who fails to disclose such a fault is liable for damage that arises directly from it. If the goods are bailed for hire, the section can impose liability even without knowledge of the fault.

Option feedback

Option A

A slight fault alone does not establish material interference with use or an extraordinary risk.

Option B

Minor inconvenience by itself does not meet the requirement of material interference.

Option C

Known faults that materially interfere with the use of the goods must be disclosed.

Option D

Increased usefulness for some other purpose is not material interference with the intended use or an extraordinary risk by itself.

Practice for these exams

Related question papers

Related exam syllabi

Related questions in this topic