(Yet to verify )

If the renter finds a defect in the goods, can he dissolve the contract? For example, a man rented a car or a house, which is defective.

A) If the renter knew of the defect before renting, he has no right to terminate the contract or demand a decrease in the rent; however the renter and the lender can come to a mutual agreement.
B) The defect was present before, but the renter discovered it after renting. This has some possibilities:


1) the defect is in the rented thing:

a) The defect results in part of rented thing being unusable for example, he rents a flat and finds a room to be completely destroyed, in this case the renter has two rights; he can either demand a decrease in the rent or he can terminate the contract. The owner is obliged to accept the demands of the renter. 
b) The defect results in reduced utility of part of rented thing for example if the said room is not completely destroyed but can be used, for example, as a storeroom, then the renter can terminate the contract but he cannot demand a reduction in rent.


2) There is a decrease/reduction in the usefulness of the rented object. For example one rents a car and then discovers that the car doesn’t pick up speed resulting in police fines, the renter has a right to terminate the contract and the owner has to accept.


3) There is a defect in the rented object, but it can still be used fully. For example the car which has been rented has a dent. In this case also, the renter can terminate the contract but not demand a reduction in the rent. 


4) If the rented object has not been specified, example one asks for a room in a hotel ( any room, you have not specified a particular room) and you are given a defective room, you can demand another room, & if the hotel doesn’t give or doesn’t want to give another room in spite of having another room then the renter has the right to terminate the contract

If there is a defect which has not been covered above, the renter has no rights.