Bailors are legally obligated under bailment provisions to disclose known defects in bailed chattels pursuant to section________________?
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Answer: C. 150, of the Contract Act
Explanation
Section 150 of the Contract Act obligates bailors to disclose known faults in goods bailed. Failure to disclose dangerous defects makes the bailor liable for resulting damages to the bailee. This statutory duty ensures fairness and safety in commercial and personal bailment transactions. Bailment involves the delivery of goods by one person to another for a specific purpose. Contract law governs the mutual rights, duties, and liabilities of bailors and bailees. Statutory obligations protect unsuspecting bailees from hidden hazards in the bailed property.
Commercial lenders and lessors must inspect and disclose equipment faults to avoid legal liability. Litigants cite contract act provisions when seeking compensation for damages caused by defective goods. Transparency in bailments fosters trust in commercial leasing and borrowing arrangements. Section 148 of the Contract Act defines the general concept of bailment rather than disclosure duties. Section 149 of the Contract Act addresses the delivery of goods to the bailee instead of faults. The option none of above is incorrect because section 150 specifically mandates fault disclosure.
- Subject
- Law
- Category
- Judiciary and Law
- Topic
- —
- Difficulty
- medium
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