Legal World

Section 154 Contract Act — Liability of bailee making unauthorized use of goods bailed

The Indian Contract Act, 1872 · Official PDF page 39

Open in NyayaOfficial PDF, page 39

154. Liability of bailee making unauthorized use of goods bailed.—If the bailee makes any use of the goods bailed which is not according to the conditions of the bailment, he is liable to make compensation to the bailor for any damage arising to the goods from or during such use of them.

1. The responsibility of the Trustees of the Port of Madras constituted under the Madras Port Trust Act, 1905 (Madras Act 2 of 1905), in regard to goods has been declared to be that of a bailee under these sections, without the qualifying words “i n the absence of any special contract” in s. 152, see s. 40(1) of that Act. 2.As to railway contracts see the Indian Railways Act, 1890 (9 of 1890), s. 72. As to the liability of common carriers, see the Carriers Act, 1865 (3 of 1865), s. 8.

Illustrations (a)A lends a horse to B for his own riding only. B allows C, a member of his family, to ride the horse. C rides with c are, but the horse accidentally falls and is injured. B is liable to make compensation to A for the injury done to the horse. (b)A hires a horse in Calcutta from B expressly to marc h to Benares. A rides with due care, but marches to Cuttack instead. The horse accidentally falls and is injured. A is liable to make compensation to B for the injury to the horse.

Text extracted from the official PDF (India Code source copy; consolidation date not certified). Line breaks and footnote marks may differ; the PDF is the authority.

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