Section 154 The Indian Contract Act, 1872
📜 Section 154 – The Indian Contract Act, 1872
Section 154: Bailor’s responsibility to disclose faults in goods bailed
"The bailor is responsible for damage to the bailee directly caused by the faults in the goods bailed, of which the bailor is aware but does not disclose to the bailee."
✅ Explanation:
This section relates to the duties of the bailor in a contract of bailment.
If the bailor knows of any faults or defects in the goods he delivers to the bailee, he must disclose them.
If he fails to disclose, and the bailee suffers damage or loss because of that fault, the bailor is liable.
🧾 Example:
A gives his motorcycle to B for safekeeping, knowing the brake system is faulty but doesn’t inform B. If B meets with an accident due to brake failure, A is liable for the damage under Section 154.
🔍 Key Points:
Applies only when the bailor had knowledge of the defect.
Liability arises only when damage is directly caused by that fault.
It protects the bailee from hidden dangers.
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