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X hires a carriage from Y and is injured because of a defect in the carriage. Y did not know about the…

In a bailment for hire, Section 150 makes the bailor responsible for damage arising from a fault in the goods, even without knowledge of the fault. Illustration (b) applies…

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X hires a carriage from Y and is injured because of a defect in the carriage. Y did not know about the defect. What is Y’s liability under Section 150 of the Indian Contract Act, 1872?

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Answer and explanation

Correct answer A

In a bailment for hire, Section 150 makes the bailor responsible for damage arising from a fault in the goods, even without knowledge of the fault. Illustration (b) applies that rule to an unsafe hired carriage.

Option feedback

Option A

The carriage was hired and its defect caused the injury. Y’s lack of knowledge does not remove liability.

Option B

Taking possession on hire does not displace the bailor’s statutory responsibility for damage caused by defects.

Option C

Section 150 does not impose a one-half limit on this liability.

Option D

The bailor’s liability under Section 150 for goods bailed for hire does not turn on discoverability of the defect.

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