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Y hires out a carriage to X for payment. An unsafe condition in the carriage directly injures X. Y did…

Section 150 makes a bailor for hire liable for damage caused by a fault in the hired goods even without knowledge of the fault. The unsafe carriage in illustration (b)…

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Y hires out a carriage to X for payment. An unsafe condition in the carriage directly injures X. Y did not know about the condition. Under section 150 of the Indian Contract Act, 1872, is Y liable for the injury caused by it?

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Answer and explanation

Correct answer A

Section 150 makes a bailor for hire liable for damage caused by a fault in the hired goods even without knowledge of the fault.

The unsafe carriage in illustration (b) illustrates this rule.

Option feedback

Option A

For goods bailed for hire, the bailor is liable for damage arising from the fault whether or not the bailor knew about it.

Option B

The knowledge requirement does not govern the separate rule for bailment for hire.

Option C

Section 150 does not impose a fixed fifty-percent cap.

Option D

Delivery of possession is part of the bailment and does not remove the hire rule.

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