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X hires a carriage from Y and is injured because the carriage is unsafe. Y did not know of the fault.…

When goods are bailed for hire, section 150 makes the bailor responsible for damage caused by faults in the goods even if the bailor did not know of them. Illustration (b)…

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

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Answer and explanation

Correct answer A

When goods are bailed for hire, section 150 makes the bailor responsible for damage caused by faults in the goods even if the bailor did not know of them.

Illustration (b) applies this rule to an unsafe hired carriage.

Option feedback

Option A

The fault in the hired carriage caused the injury, so section 150 imposes liability.

Option B

For hired goods, lack of knowledge of the fault does not remove liability.

Option C

Section 150 sets no fifty-percent cap on this liability.

Option D

Intentional concealment is unnecessary where the faulty goods were bailed for hire.

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