Right of Bailor and Bailee against Wrongdoer | Law of Contracts - CLAT PG PDF Download

 Right of Bailor and Bailee Against Wrongdoer 

When a third party unlawfully takes away the bailee's right to use or possess the bailed goods, or causes harm to them, the bailee has the right to pursue the same remedies that the owner could have used if there was no bailment. Both the bailor and the bailee have the option to file a lawsuit against the third party for such deprivation or harm.

 Section 180 of the Act 

• Enables the bailee to sue anyone who has unlawfully taken away the use or possession of the bailed goods or has caused them harm.

According to this section:

• If a third party wrongfully takes away the bailee's use or possession of the bailed goods, or causes them any harm, the bailee is entitled to use the same remedies that the owner could have used in a similar situation if no bailment had occurred.
• Both the bailor and the bailee have the right to initiate legal action against a third party for such deprivation or harm.

 Section 181 

• Focuses on how the relief obtained by the bailee in a lawsuit against a third party should be divided between the bailor and the bailee based on their respective interests.

For instance, if A forcibly takes a color television from B's repair shop, either the owner of the television or B can sue A. If B decides to file the lawsuit, he must give the amount received, after deducting his repair charges, to the owner of the television.

Responsibilities of a Finder of Goods

According to Section 71 of the Contract Act, a finder of goods has the same responsibilities as a bailee regarding the found items.

The duties of a finder of goods include:

•  Taking reasonable care  of the found goods.
•  Not using  the goods for personal purposes.
•  Avoiding mixing  the found goods with personal belongings.
•  Making efforts  to identify and return the true owner of the goods.

 Responsibilities of a Finder of Goods 

•  Taking Reasonable Care:  The finder must ensure the found goods are kept safe and in good condition.
•  No Personal Use:  The finder is not allowed to use the found goods for personal purposes.
•  Avoiding Mixing:  The found goods should not be mixed with the finder’s own belongings.
•  Finding the True Owner:  The finder has the responsibility to locate the real owner of the goods and return them.

Rights of Finder of Lost Goods

•  Right of Lien:  The finder of lost goods can exercise the right of particular lien under section 168 of the Indian Contract Act, 1872, if the actual owner refuses to pay for the expenses incurred in preserving the goods or in finding the actual owner.
•  Right to Claim the Award:  If the owner announces a reward for the return of lost goods, the finder has the right to claim the award if the owner refuses to pay it. For example, if X finds Z’s wallet and returns it, and Z promises to give X Rs. 100 as a reward, this forms a contract of bailment, and Z is obligated to pay the reward.
•  Right to Sell the Goods Found:  Under section 169 of the Indian Contract Act, 1872, the finder of lost goods has the right to sell the goods under certain circumstances, such as when the actual owner cannot be found after due diligence or when the goods are perishable.