Bailor Bound to Disclose to the Bailee

In a bailment relationship, the bailor is bound to disclose to the bailee any defects in the goods that the bailor knows about or ought to know about. This is because the bailee is entitled to have the goods in good condition and is not expected to take on the risk of hidden defects.

The bailor’s duty to disclose defects is not absolute. The bailor is only required to disclose defects that the bailor knows about or ought to know about. For example, the bailor is not required to disclose defects that are obvious or that the bailee could have discovered by inspecting the goods.

The bailor’s duty to disclose defects can be discharged by the bailee’s express or implied waiver. For example, if the bailee inspects the goods and does not ask the bailor about any defects, the bailee may be considered to have waived their right to have the defects disclosed.

MCQs on Bailor Bound to Disclose to the Bailee

1. Which of the following is not a defect that the bailor is bound to disclose to the bailee?
   • A hidden defect.
   • An obvious defect.
   • A defect that the bailee could have discovered by inspecting the goods.
   • A defect that the bailor knows about but the bailee does not know about.
   • Answer: An obvious defect. The bailor is not required to disclose obvious defects to the bailee.
2. The bailor’s duty to disclose defects can be discharged by the bailee’s express or implied waiver. What does this mean?
   • This means that the bailee can waive their right to have the defects disclosed by either expressly stating that they do not want to be told about the defects or by impliedly waiving their right by inspecting the goods and not asking the bailor about any defects.
3. The bailor’s duty to disclose defects is not absolute. What does this mean?
   • This means that the bailor is only required to disclose defects that they know about or ought to know about. For example, the bailor is not required to disclose defects that are obvious or that the bailee could have discovered by inspecting the goods.
4. The bailee can sue the bailor for damages if the bailor fails to disclose a defect in the goods. What are some examples of damages that the bailee can claim?
   • The cost of repairing the goods.
   • The loss of the use of the goods.
   • The cost of replacing the goods.
   • All of the above.
   • Answer: All of the above. The bailee can claim the cost of repairing the goods, the loss of the use of the goods, and the cost of replacing the goods if the bailor fails to disclose a defect in the goods.