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Section 154, Contract Act 1872: Liability Of Bailee Making Unauthorised Use Of Goods Bailed

Section 154 under the Chapter IX (Of bailment) of the Contract Act, 1872 of India - 'Liability of bailee making unauthorised use of goods bailed', is reproduced hereunder:—

“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.

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 care, 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 march to Banaras. 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.”

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