Section 577: To disclose faults in goods bailed

1) The bailor shall disclose to the bailee any fault in the goods bailed of which the bailor is aware and which interferes with the use of them or can cause any loss or damage to the bailee or warrants separate provision or arrangement for their protection.

2) If the bailor does not make such disclosure knowingly as required to be made pursuant to sub-section (1) to the bailee, the bailor shall be liable for any loss or damage arising from such goods or such non-disclosure.

3) Notwithstanding anything contained in sub-section (2), if the goods are bailed for hire, the bailor shall be responsible for any loss or damage resulting from any faults in such goods, even if the bailor was not aware of the existence of such faults in such goods.