Chapter- 5 Contracts Relating to Bailment

Section 27 : Particulars of bailed property to be mentioned

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1) In case the bailee knows that the bailed property must not be used due to any defect in it, or because it could cause any loss or damage or because separate arrangements or provisions be made for its protection, he/she shall inform the bailee about all such matters to the best of his/her knowledge.

2) In case any information to be supplied under sub-section (1) is not supplied even while knowing about it, the bailer must bear the loss or damage caused by that property or because of that property to the bailee.

3) Notwithstanding anything contained in sub-section (1), in case any property given on rent or as collateral or for sale causes any loss or damage while using it due to its defect, the bailer must bear such loss or damage even if he/she has no knowledge about the defect in the property.

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Section 27 : Particulars of bailed property to be mentioned

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