Section 150 The Indian Contract Act, 1872
Section 150 of the Indian Contract Act, 1872 explains the duties of a bailor in a contract of bailment. It focuses on the responsibility of the bailor to disclose known faults in the goods bailed.
🔹 Section 150 – Bailor’s duty to disclose faults in goods bailed
The bailor is bound to disclose to the bailee faults in the goods bailed, of which the bailor is aware, and which materially interfere with the use of them, or expose the bailee to extraordinary risks; and if he does not make such disclosure, he is responsible for damage arising to the bailee directly from such faults.
If the goods are bailed for hire, the bailor is responsible for such damage, whether he was or was not aware of the existence of such faults in the goods bailed.
🔍 Explanation:
Section 150 lays down two rules based on the type of bailment:
1. Gratuitous Bailment (Without Reward):
Bailor must disclose known faults.
If the bailor knows about any defect in the goods that:
Affects the bailee’s use, or
Poses risk to the bailee’s safety,
Then the bailor is liable for damages if such faults are not disclosed and cause harm.
2. Bailment for Hire or Reward (e.g., lending for a fee):
Bailor is liable for all faults in the goods, whether known or not.
This is because the bailee is paying for the use of the goods and thus deserves greater protection.
🧑⚖️ Illustration:
Gratuitous Bailment:
A lends his horse to B without charge. A knows the horse is wild and kicks, but doesn't tell B. B gets injured. A is liable because he didn’t disclose a known danger.
Bailment for Hire:
A rents his horse to B. Unknown to A, the horse has a hidden disease and collapses while being used. A is still liable because it was a bailment for reward.
📌 Key Takeaways:
Duty of disclosure is stricter when the bailment is for hire.
Bailor is always liable for known defects.
In bailment for hire, bailor is liable even for unknown defects.
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