Compensation Amount for Damage to a Borrowed Item
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Question
I borrowed headphones from my friend and broke them. Should I pay him the value of new headphones, or the value of the used headphones that I borrowed?
Answer
You must pay him the value of the headphones at the time of the damage. [This is estimated based on the average lifespan of headphones, for example: if headphones typically last a year, and they were used for half a year, you should pay half the price.]
Source
Shulchan Aruch, Choshen Mishpat, Siman 341 and 342
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