Indian Contract Act, 1872 · Chapter IX: Of Bailment
Section 150: Bailor's duty to disclose faults in goods bailed
In plain words
The bailor must disclose known faults in the goods that materially interfere with their use or expose the bailee to extraordinary risks, and is responsible for damage that directly results if they do not.
- If the goods are hired out, the bailor is responsible for such damage whether or not they knew of the fault.
Example: A hires a carriage from B. It is unsafe, though B does not know this, and A is injured. B is responsible.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Official text
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.
Illustrations
(a) A lends a horse, which he knows to be vicious, to B. He does not disclose the fact that the horse is vicious. The horse runs away. B is thrown and injured. A is responsible to B for damage sustained.
(b) A hires a carriage of B. The carriage is unsafe, though B is not aware of it, and A is injured. B is responsible to A for the injury.
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 150
No Supreme Court judgment in our database cites this section yet.