[Section 31]-. "Contingent contract" defined
A “contingent contract “is a contract to do or not to do something, if some event, collateral to
such contract, does or does not happen.
Illustration
Contracts to pay B Rs. 10,000 if B's house is burnt. This is a contingent contract.
[Section 32]-. Enforcement of contracts contingent on an event happening
Contingent contracts to do or not to do anything if an uncertain future event happens
cannot be enforced by law unless and until that event has happened.
If the event becomes impossible, such contracts become void.
Illustrations
(a) A makes a contract with B to buy B's horse if A survives C.
This contract cannot be enforced by law unless and until C dies in A's lifetime.
(b) A makes a contract with B to sell a horse to B at a specified price, if C, to whom
the horse has been offered, refuses to buy him. The contract cannot be enforced by law
unless and until C refuses to buy the horse.
(c) A contracts to pay B a sum of money when B marries C. C dies without being married
to B. The contract becomes void.
[Section 33]-. Enforcement of contracts contingent on an event not happening
Contingent contracts to do or not to do anything if an uncertain future event does not
happen can be enforced when the happening of that event becomes impossible, and not
before.
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Illustration
A agrees to pay B a sum of money if a certain ship does not return. The ship is sunk. The
contract can be enforced when the ship sinks.
[Section 34]-. When event on which contract is contingent to be deemed
impossible, if it is the future conduct of a living person
If the future event on which a contract is contingent is the way in which a person will act
at an unspecified time, the event shall be considered to become impossible when such
person does anything which renders it impossible that he should so act within any
definite time, or otherwise than under further contingencies.
[Section 35]-. When contracts become void which are contingent on happening of
specified event within fixed time?
Contingent contracts to do or not to do anything if a specified uncertain event happens
within a fixed time become void if, at the expiration of the time fixed, such event has
not happened, or if, before the time fixed, such event becomes impossible.
When contracts may be enforced which are contingent on specified event not happening
within fixed time.-Contingent contracts to do or not to do anything if a specified
uncertain event does not happen within a fixed time may be enforced by law when the
time fixed has expired and such event has not happened or, before the time fixed has
expired, if it becomes certain that such event will not happen.
[Section 36]-.Agreement contingent on impossible events void.-Contingent agreements
to do or not to do anything, if an impossible event happens, are void, whether the
impossibility of the event is known or not to the parties to the agreement at the time when
it is made.
Illustrations
(a) A agrees to pay B 1,000 rupees if two straight lines should enclose a space. The
agreement is void.
(b) A agrees to pay B 1,000 rupees if B will marry A’s daughter C. C was dead at the time
of the agreement. The agreement is void.
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THE PERFORMANCE OF CONTRACTS
Contracts which must be performed
[Section 37]-. Obligation of parties to contracts
The parties to a :contract must either perform, or offer to perform, their respective
promises, unless such performance' is dispensed with or excused under the provisions
of this Act, or of any other law.
Promises bind the representatives of the promisor in case of the death of such promisor
before performance, unless a contrary intention appears from the contract.
[Section 38]-. Effect of refusal to accept offer of performance
Where a promisor has made an offer of performance to the promisee, and the offer has not
been accepted, the promisor is not responsible for non- performance, nor does he thereby
lose his rights under the contract.
Every such offer must fulfill the following conditions:-
1) It must be unconditional;
2) it must be made at a proper time and place, and under such circumstances that
the person to whom it is made may have a reasonable opportunity of ascertaining
that the person by whom it is made is able and willing there and then to do the
whole of what he is bound by his promise to do
3) If the offer is an offer to deliver anything to the promisee, the promisee must have a
reasonable opportunity of seeing that the thing offered is the thing which the
promisor is bound by his promise to deliver.
An offer to one of several joint promises has the same legal consequences as an offer to all of
them,
[Section 39]-. Effect of refusal of party to perform promise wholly
When a party to a contract has refused to perform, or disabled himself from performing, his
promise in its entirety, the promisee may put an end to the contract, unless he has
signified, by words or conduct, his acquiescence in its continuance.
[Section 40]-. Person by who promise is to be performed
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If it appears from the nature of the case that it was the intention of the parties to any
contract that any promise contained in it should be performed by the promisor himself,
such promise must be performed by the promisor. In other cases, the promisor or his
representatives may employ a competent person to perform it.
[Section 41]- Effect of accepting performance from third person.-When a promisee
accepts performance of the promise from a third person, he cannot afterwards enforce it
against the promisor.
[Section 42]-. Devolution of joint liabilities
When two or more persons have made a joint promise, then, unless a contrary intention
appears by the contract, all such persons, during their joint lives, and, after the death of
any of them, his representative jointly with the survivor or survivors, and, after the
death of the last survivor, the representatives of all jointly, must fulfill the promise.
[Section 43]-. Any one of joint promisor may be compelled to perform
When two or; more persons make a joint promise, the promisee may, in the absence of
express agreement to the contrary, compel any 1*[one or more] of such joint promisor, to
perform the whole of the promise.
Each promisor may compel contribution. Each of two or more joint promisor may compel
every other joint promisor to contribute equally with himself to the performance of the
promise, unless a contrary intention appears from the contract.
Sharing of loss by default in contribution.-If any one of two or more joint promisor makes
default in such contribution, the remaining joint promisor must bear the loss arising from
such default in equal shares.
Explanation.-Nothing in this section shall prevent a surety from recovering from his
principal; payments made by the surety on behalf of the principal, or entitle the principal to
recover anything from the surety on account of payments made by the principal.
[Section 44]-. Effect of release of one joint promisor
Where two or more persons have made a joint promise, a release of one of such joint
promisor by the promisee does not discharge the other joint promisor or joint promisor ;
neither does it free the joint promisor so released from responsibility to the other joint
promisor or joint Promisor.
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[Section 45]-. Devolution of joint rights
When a person has made a promise to two or more persons jointly, then, unless a
contrary intention appears from the contract, the right to claim performance rests, as
between him and them, with them during their joint lives, and, after the death of any of
them, with the representative of such deceased person. Jointly with the survivor or
survivors, and, after the death of the last survivor, with the representatives of all jointly.2*
[Section 46]- Time for performance of promise, when no application is to be made
and no time is specified
Where, by the contract, a promisor is to perform his promise without application by the
promisee, and no time for performance is specified, the engagement must be performed
within a reasonable time.
Explanation.-The question “what is a reasonable time “is, in each particular case, a
question of fact.
[Section 47]- . Time and place for performance of promise, where time is
specified and no application to be made
When promise is to be performed on a certain day, and the promisor has undertaken to
perform it without application by the promisee, the promisor may perform it at any time
during the usual hours of business on such day and at the place at which the promise ought
to be performed.
[Section 48]-. Application for performance on certain day to be at proper time
and place
When a promise is to be performed on a certain day, and the promisor has not undertaken
to perform it without application by the promisee, it is the duty of the, promisee to
apply for performance at a proper place and within the usual hours of business.
Explanation.-The question “what is a proper time and place. “Is, in each particular case, a
question of fact?
[Section 49]-. Place for performance of promise, where no application to be made
and no place fixed for performance
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When a promise is to be performed without application by the promisee, and no place is
fixed for the performance of it, it is the duty of the promisor to apply to the promisee to
appoint a reasonable place for the performance of the promise, and to perform it at such
place.
[Section 50]-. Performance in manner or at time prescribed or sanctioned by
promisee
The performance of any promise may be made in any manner, or at any time which the
promisee prescribes or sanctions.
[Section 51]-. Promisor not bound to perform, unless reciprocal promisee ready
and willing to perform
When a contract consists of reciprocal promises to be simultaneously performed, no
promisor need perform his promise unless the promisee is ready and willing to perform his
reciprocal promise.
[Section 52]-. Order of performance of reciprocal promises
Where the order in which reciprocal promises are to be performed is expressly fixed by the
contract, they shall be performed in that order; and, where the order is not expressly fixed
by the contract, they shall be performed in that order which the nature of the transaction
requires.
[Section 53]-. Liability of party preventing event on which the contract is to take
effect
When a contract contains reciprocal promises, and one party to the contract prevents the
other from performing his promise, the contract becomes voidable at the option of the party
so prevented; and he is entitled to compensation 1* from the other party for any loss which
he may sustain in consequence of the non-performance of the contract.
[Section 54]-. Effect of default as to that promise which should be first performed,
in contract consisting of reciprocal promises
When a contract consists of reciprocal promises, such that one of them cannot be
performed, or that its performance cannot be claimed till the other has been performed,
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and the promisor of the promise last mentioned fails to perform it, such promisor cannot
claim the performance of the reciprocal promise, and must make compensation to the other
party to the contract for any loss which such other party may sustain by the nonperformance of the contract.
[Section 55]-. Effect of failure to perform at fixed time, in contract in which time
is essential
When a party to a contract promises to do a certain thing at or before a specified time, or
certain things at or before specified times, and fails to do any such thing at or before the
specified time, the contract, or so much of it as has not been performed, becomes
voidable at the option of the promisee, if the intention of the parties was that time should
be of the essence of the contract.
Effect of such failure when time is not essential.
If it was not the intention of the parties that time should be of the essence of the contract,
the contract does not become voidable by the failure to do such thing at or before the
specified time; but the promisee is entitled to compensation from the promisor for any loss
occasioned to him by such failure.
Effect of acceptance of performance at time other than that agreed upon. If, in case of a
contract voidable on account of the promise’s failure to perform his promise at the time
agreed, the promisee accepts performance of such promise at any time other than that
agreed, the promisee cannot claim compensation for any loss occasioned by the nonperformance of the promise at the time agreed, unless, at the time of such acceptance he
gives notice to the promisor of his intention to do so.
[Section 56]-. Agreement to do impossible act
An agreement to do an act impossible in itself is void.
Contract to do act afterwards becoming impossible or unlawful.-A contract to do an act
which, after the contract is made, becomes impossible, or, by reason of some event which
the Promisor could not prevent, unlawful, becomes void when the act becomes impossible
or Unlawful.
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Compensation for loss through non-performance of act known to be impossible or
unlawful.-Where one person has promised to do something which he knew, or, with
reasonable diligence, might have known, and which the promisee did not know, to be
impossible or unlawful, such promisor must make compensation to such promisee for any
loss which such promisee sustains through the non-performance of the promise.
[Section 57]-. Reciprocal promise to do things legal and also other things illegal
Where persons reciprocally promise, firstly, to do certain things which are legal, and,
secondly, under specified circumstances to do certain other things which are illegal, the
first set of promises is a contract, but the second is a void agreement.
[Section 58]-. Alternative promise, one branch being illegal
In the case of an alternative promise, one branch of which is legal and the other illegal, the
legal branch alone can be enforced.
[Section 59]-. Application of payment where debt to be discharged is indicated
Where a debtor, owing several distinct debts to one person, makes a payment to him,
either with express intimation, or under circumstances implying that the payment is to
be applied to the discharge of some particular debt, the payment, if accepted, must be
applied accordingly.
[Section 60]-. Application of payment where debt to be discharged is not
indicated
Where the debtor has omitted to intimate and there are no other circumstances,
indicating to which debt the payment is to be applied, the creditor may apply it at his
discretion to any lawful debt actually due and payable to him from the debtor, whether
its recovery is or is not barred by the law in force for the time being as to the limitation of
suits.
[Section 61]-. Application of payment where neither party appropriates
Where neither party makes any appropriation the payment shall be applied in
discharge of the debts in order of time, whether they are or are not barred by the law in
force for the time being as to the limitation of suits. If the debts are of equal standing,
the payment shall be applied in discharge of each proportionally.
Contracts which need not be performed
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[Section 62]-. Effect of notation, rescission, and alteration of contract
If the parties to a contract agree to substitute a new contract for it, or to rescind or alter it,
the original contract need not be performed.
[Section 63]-. Promisee may dispense with or remit performance of promise
Every promisee may dispense with or remit, wholly or in part, the performance of the
promise made to him, or may extend the time for such performance,1* or may accept
instead of it any satisfaction which he thinks fit.
[Section 64]-. Consequences of rescission of voidable contract
When a person at whose option a contract is voidable rescinds it, the other party thereto
need not perform any promise therein contained in which he is promisor. The party
rescinding a voidable contract shall, if he have received any benefit there under from
another party to such contract, restore such benefit, so far as may be, to the person from
whom it was received.'
[Section 65]-. Obligation of person who has received advantage under void
agreement, or contract that becomes void
When an agreement is discovered to be void, or when a contract becomes void, any person
who has received any advantage under such agreement or contract is bound to restore it, or
to make compensation for it to the person from whom he received it.
[Section 66]-. Mode of communicating or revoking rescission of voidable
contract
The rescission of a voidable contract may be communicated or revoked in the same manner,
and subject to the same rules, as apply to the communication or revocation of a proposal.2*
[Section 67]-. Effect of neglect of promisee to afford promisor reasonable facilities
for performance
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If any promisee neglects or refuses to afford the promisor reasonable facilities for the
performance of his promise, the promisor is excused by such neglect or refusal as to any
non-performance caused thereby.
[Section 68]-. Claim for necessaries supplied to person incapable of contracting,
or on his account
If a person, incapable of entering into a contract, or any one whom he is legally bound to
support, is supplied by another, person with necessaries suited to his condition in life, the
person who has furnished such supplies is entitled to be reimbursed from the property of
such incapable person.1*
[Section 69]-. Reimbursement of person paying money due by another, in
payment of which he is interested
A person who is interested in the payment of money which another is bound by law to
pay, and who therefore pays it, is entitled to be reimbursed by the other.
[Section 70]-. Obligation of person enjoying benefit of non-gratuitous act
Where a person lawfully does anything for another person, or delivers anything to him,
not intending to do so gratuitously, and such other person enjoys the benefit thereof, the
latter is bound to make compensation to the former in respect of, or to restore, the thing
so done or delivered.2*
[Section 71]-. Responsibility of finder of goods
A person who finds goods belonging to another, and takes them into his custody, is subject
to the same responsibility as a bailed.
[Section 72]-. Liability of person to whom money is paid or thing delivered by
mistake or under coercion
A person to whom money has been paid, or anything delivered, by mistake or under
coercion, must repay or return it.
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THE CONSEQUENCES OF BREACH OF CONTRACT
[Section 73]-. Compensation for loss or damage caused by breach of contract
When a contract has been broken, the party who suffers by such breach is entitled to
receive, from the party who has broken the contract, compensation for any loss or
damage caused to him thereby, which naturally arose in the usual course of things from
such breach, or which the parties knew, when they made the contract, to be likely to
result from the breach of it.
Such compensation is not to be given for any remote and indirect loss or damage sustained
by reason of the breach.
Compensation for failure to discharge obligation resembling those created by contract.-
When an obligation resembling those created by contract has been incurred and has not
been discharged, any person injured by the failure to discharge it is entitled to receive the
same compensation from the party in default, as if such person had contracted to
discharge it and had broken his contract.
Explanation.-In estimating the loss or damage arising from a breach of contract, the
means which existed of remedying the inconvenience caused-by the non-performance of
the contract must be taken into account.
[Section 74]- . Compensation for breach of contract where penalty stipulated for
1*[When a contract has been broken, if a sum is named in the contract as the amount to
be paid in case of such breach, or if the contract contains any other stipulation by way of
penalty, the party complaining of the breach is entitled, whether or not actual damage or
loss is proved to have been caused thereby, to receive from the party who has broken the
contract reasonable compensation not exceeding the amount so named or, as the case may
be, the penalty stipulated for.
Explanation.-A stipulation for increased interest from the date of default may be a
stipulation by way of penalty.]
Exception.-When any person enters into any bail-bond, recognizance or other instrument
of the same nature, or, under the provisions of any law, or under the orders of the
1*[Central Government] or of any State Government, gives any bond for the performance
of any public duty or act in which the public are interested, he shall be liable, upon
breach of the condition of any such instrument, to pay the whole sum mentioned therein.
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Explanation.-A person who enters into a contract with Government does not necessarily
thereby undertake any public duty, or promise to do an act in which the public are
interested.
[Section 75]-. Party rightfully rescinding contract entitled to compensation
A person who rightfully rescinds a contract is entitled to compensation for any
damage which he has sustained through the non-fulfillment of the contract.
[Section 124]-. "Contract of indemnity" defined
A contract by which one party promises to save the other from loss caused to him by
the conduct of the promisor himself, or by the conduct of any other person, is called a "
contract of indemnity".
[Section 125]-. Rights of indemnity holder when sued
The promisee in a contract of indemnity, acting within the scope of his authority, is entitled
to recover from the promisor-
1) all damages which he may be compelled to pay in any suit in respect of any
matter to which the promise to indemnify applies
2) all costs which he may be compelled to pay in any such suit if, in bringing or
defending it, he did not contravene the orders of the promisor, and acted as it
would have been prudent for him to act in the absence of any contract of
indemnity, or if the promisor authorized him to bring or defend the suit ;
3) all sums which he may have paid under the terms of any compromise of any such
suit, if the compromise was not contrary to the orders of the promisor, and was one
which it would have been prudent for the promisee to make in the absence of
any contract of indemnity, or if the promisor authorized him to compromise the
suit.
[Section 126]-. "Contract of guarantee", “surety", principal debtor" and
"creditor".-
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A “contract of guarantee “is a contract to perform the promise, or discharge the liability, of
a third person in case of his default. The person who gives the guarantee is called the "
surety"; the person in respect of whose default the guarantee is given is called the "
principal debtor ", and the person to whom the guarantee is given is called the " creditor ".
A guarantee may be either oral or written.
[Section 127]-. Consideration for guarantee
Anything done, or any promise made, for the benefit of the principal debtor, may be a
sufficient consideration to the surety for giving the guarantee
[Section 128]-. Surety’s liability
The liability of the surety is co- extensive with that of the principal debtor, unless it is
otherwise provided by the contract.
[Section 129]-."Continuing guarantee"
A guarantee which extends to a series of transactions is called a "continuing guarantee".
[Section 130]-. Revocation of continuing guarantee
A continuing guarantee may at any time be revoked by the surety, as to future
transactions, by notice to the creditor.
[Section 131]-. Revocation of continuing guarantee by surety’s death
The death of the surety operates, in the absence of any contract to the contrary, as a
revocation of a continuing guarantee, so far as regards future transactions.
[Section 132]-. Liability of two persons, primarily liable, not affected by
arrangement between them that one shall be surety on other's default
Where two persons contract with a third person to undertake a certain liability, and also
contract with each other that one of them shall be liable only on the default of the other, the
third person not being a party to such contract, the liability of each of such two persons to
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the third person under the first contract is not affected by the existence of the second
contract, although such third person may have been aware of its existence.
[Section 133]-. Discharge of surety by variance in terms of contract
Any variance, made without the surety's consent, in the terms of the contract between the
principal 1[debtor] and the creditor, discharges the surety as to transactions subsequent to
the variance.
[Section 134]-. Discharge of surety by release or discharge of principal debtor
The surety is discharged by any contract between the creditor and the principal debtor, by
which the principal debtor is released or by any act or omission of the creditor, the legal
consequence of which is the discharge of the principal debtor.
[Section 135]-. Discharge of surety when creditor compounds with, gives time to,
or agrees not to sue, principal debtor
A contract between the creditor and the principal debtor, by which the creditor makes a
composition with, or promises to give time to, or not to sue, the principal debtor,
discharges the surety, unless the surety assents to such contract.
[Section 136]-. Surety not discharged when agreement made with third person to
give time to principal debtor
Where a contract to give time to the principal debtor is made by the creditor with a third
person, and not with the principal debtor, the surety is not discharged.
[Section 137]- Creditor’s forbearance to sue does not discharge surety
Mere forbearance on the part of the creditor to sue the principal debtor or to enforce
any other remedy against him does not, in the absence of any provision in the guarantee
to the contrary, discharge the surety.
[Section 138]-. Release of one co-surety does not discharge others
Where there are co-sureties, a release by the creditor of one of them does not discharge the
others; neither does it free the surety so released from his responsibility to the other
sureties1.
[Section 139]-. Discharge of surety by creditor's act or omission impairing surety’s
eventual remedy
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If the creditor does any act which is inconsistent with the rights of the surety, or omits
to do any act which his duty to the surety requires him to do, and the eventual remedy
of the surety himself against the principal debtor is thereby impaired, the surety is
discharged.
[Section 140]-. Rights of surety on payment or performance
Where a guaranteed debt has become due, or default of the principal debtor to perform a
guaranteed duty has taken place, the surety, upon payment or performance of all that he is
liable for, is invested with all the rights which the creditor had against the principal debtor.
[Section 141]-. Surety's right to benefit of creditor's securities
A surety is entitled to the benefit of every security which the creditor has against the
principal debtor at the time when the contract of surety ship is entered into, whether
the surety knows of the existence of such security or not ; and, if the creditor loses, or,
without the consent of the surety, parts with such security, the surety is discharged to
the extent of the value of the security.
[Section 142]-. Guarantee obtained by misrepresentation invalid
Any guarantee which has been obtained by means of misrepresentation made by the
creditor, or with his knowledge and assent, concerning a material part of the transaction, is
invalid.
[Section 143]-. Guarantee obtained by concealment invalid
Any guarantee which the creditor has obtained by means of keeping silence as to material
circumstances is invalid.
[Section 144]-. Guarantee on contract that creditor shall not act on it until cosurety joins
Where a person gives a guarantee upon a contract that the creditor shall not act upon it
until another person has joined in it as co-surety, the guarantee is not valid if that other
person does not join.
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[Section 145]-. Implied promise to indemnify surety
In every contract of guarantee there is an implied promise by the principal debtor to
indemnify the surety; and the surety is entitled to recover from the principal debtor
whatever sum he has rightfully paid under the guarantee, but, no sums which he has
paid wrongfully.
[Section 146]- . Co-sureties liable to contribute equally
Where two or more persons are CO-sureties for the same debt or duty, either jointly or
severally, and whether under the same or different contracts, and whether with or
without the knowledge of each other, the co-sureties, in the absence of any contract to the
contrary, are liable, as between themselves, to pay each an equal share of the whole debt, or
of that part of it which remains unpaid by the principal debtor1*.
[Section 147]-. Liability of co-sureties bound in different sums
Co-sureties who are bound in different sums are liable to pay equally as far as the limits of
their respective obligations permit.
BAILMENT
[Section 148]-. "Bailment” “bailer” and "bailed" defined.
A " bailment " is the delivery of goods by one person to another for some purpose, upon a
contract that they shall, when the purpose is accomplished, be returned or otherwise
disposed of according to the directions of the person delivering them. The person
delivering the goods is called the "bailer". The person to whom they are delivered is called,
the “bailed ".
Explanation.-If a person already in possession of the goods of another contracts to hold
them as a bailed, he thereby becomes the bailed, and the owner becomes the bailer of such
goods, although they may not have been delivered by way of bailment.
[Section 149]-. Delivery to bailed how made
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The delivery to the bailed may be made by doing anything which has the effect of putting
the goods in the possession of the intended bailed or of any person authorized to hold them
on his behalf.
[Section 150]-. Baylor’s duty to disclose faults in goods bailed
The bailer is bound to disclose to the bailed faults in the goods bailed, of which the bailer is
aware, and which materially interfere with the use of them, or expose the bailed to
extraordinary risks; and if he does not make such disclosure, he is responsible for damage
arising to the bailed directly from such faults.
If the goods are bailed for hire, the bailer is responsible for such damage, whether he was
or was not aware of the existence of such faults in the goods bailed.
[Section 151]-. Care to be taken by bailed
In all cases of bailment the bailee is bound to take as much care of the goods bailed to him
as a man of ordinary prudence would, under similar circumstances, take of his own
goods of the same bulk, quality and value as the goods bailed.
[Section 152]- . Bailee when not liable for loss, etc., of thing bailed
The bailee, in the absence of any special contract, is not responsible for the loss, destruction
or deterioration of the thing bailed, if he has taken the amount of care of it described in
section 151.
[Section 153]-. Termination of bailment by bailee's act inconsistent with
conditions
A contract of bailment is avoidable at the option of the bailor, if the bailee does any ad with
regard to the goods bailed, inconsistent with the conditions of the bailment.
[Section 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.
[Section 155]-. Effect of mixture, with bailor's consent, of his goods with bailee's
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If the bailee, with the consent of the bailor, mixes the goods of the bailor with his own
goods, the bailor and the bailee shall have an interest, in proportion to their respective
shares, in the mixture thus produced.
[Section 156]-. Effect of mixture without bailor's consent, when the goods can be
separated
If the bailee, without the consent of the bailor, mixes the goods of the bailor with his own
goods, and the goods can be separated or divided, the property in the goods re-mains in
the parties respectively; but the bailee is bound to bear the expense of separation or
division, and any damage arising from the mixture.
[Section 157]-. Effect of mixture, without bailor's consent, when the goods cannot
be separated
If the bailee, without the consent of the bailor, mixes the goods of the bailor with his own
goods, in such a manner that it is impossible to separate the goods bailed from the
other goods and deliver them back, the bailor is entitled to be compensated by the bailee
for the loss of the goods.
[Section 158]-. Repayment, by bailor, of necessary expenses
Where, by the conditions of the bailment, the goods are to, be kept or to be carried, or to
have work done upon them by the bailee for the bailor, and the bailee is to receive no
remuneration, the bailor shall repay to the bailee the necessary expenses incurred by him
for the purpose of the bailment.
[Section 159]-. Restoration of goods lent gratuitously
The lender of a thing
for use may at any time require its return, if the loan was gratuitous, even though
he lent it for a specified time or purpose. But, if, on the faith of such loan made for a
specified time or purpose, the borrower has acted in such a manner that the return of the
thing lent before the time agreed upon would cause him loss exceeding the benefit actually
derived by him from the loan, the lender must, if he compels the return, indemnify the
borrower for the amount in which the loss so occasioned exceeds the benefit so derived.
[Section 160]-. Return of goods bailed on expiration of time or
accomplishment of purpose
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It is the duty of the bailee to return, or deliver according to the bailor's directions, the
goods bailed, without demand, as soon as the time for which they were bailed has
expired, or the purpose for which they were bailed has been accomplished.
[Section 161]-. Bailee's responsibility when goods are not duly returned
If, by the default of the bailee, the goods are not returned, delivered or tendered at
the proper time, he is responsible to the bailor for any loss, destruction or deterioration of.
The goods from that time.
[Section 162]-. Termination of gratuitous bailment by death
A gratuitous bailment is terminated by the death either of the bailor or of the bailee.
[Section 163]-. Bailor entitled to increase or profit from goods bailed
In the absence of any contract to the contrary, the bailee is bound to deliver to the bailor, or
according to his directions, any increase or profit which may have accrued from the goods
bailed.
[Section 164]- Bailor’s responsibility to bailee
The bailor is responsible to the bailee for any loss which the bailee may sustain by reason
that the bailor was not entitled to make the bailment, or to receive back the goods or to give
directions, respecting them.
[Section 165]-. Bailment by several joint owners
If several joint owners of goods bail them, the bailee may deliver them back to, or according
to the directions of, one joint owner without the consent of all, in the absence of any
agreement to the contrary.
[Section 166]-. Bailee not responsible on re-delivery to bailor without Title
If the bailor has no title to the goods, and the bailee, in good faith, delivers them back to, or
according to the directions of, the bailor, the bailee is not responsible to the owner in
respect of such delivery.
[Section 167]-. Right of third person claiming goods bailed
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If a person, other than the bailor, claims goods bailed, he may apply to the Court to stop the
delivery of the goods to the bailor, and to decide the title to the goods. Right of finder of
goods; may sue for specific reward offered.
[Section 168]- . Right of finder of goods; may sue for specific reward offered
The finder of goods has no right to sue the owner for com- sensation for trouble and
expense voluntarily incurred by him to preserve the goods and to find out the owner; but
he may retain the goods against the owner until he receives such compensation; and,
where the owner has offered a specific reward for the return of goods lost, the finder may
sue for such reward, and may retain the goods until he receives it.
[Section 169]-. When finder of thing commonly on sale may sell it
When a thing which is commonly the subject of sale is lost, if the owner cannot with
reasonable diligence be found, or if he refuses, upon demand, to pay the lawful charges of
the finder, the finder may sell it-
1) When the thing is in danger of perishing or of losing the greater part of its value, or,
2) When the lawful charges of the finder, in respect of the thing found, amount to twothirds of its value.
[Section 170]-. Bailee's particular line
Where the bailee has, in accordance with the purpose of the bailment, rendered any
service involving the exercise of labor or skill in respect of the goods bailed, he has, in
the absence of a contract to the contrary, a right to retain such goods until he receives
due remuneration for the services he has rendered in respect of them.
[Section 171]-. General line of bankers, factors, harbingers, attorneys and policy
brokers
Bankers, factors, harbingers, attorneys of a High Court and policy-brokers may, in the
absence of a contract to the contrary, retain as a security for a general balance of
account, any goods bailed to them ; but no other persons have a right to retain, as a
security for such balance, goods bailed to them, unless there is an express contract to that
effect.1*
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[Section 172]-. "Pledge" "pawnor” and "pawnee" defined
The bailment of goods as security for payment of a debt or performance of a promise is
called “pledge ". The bailor is in this case called the “pawnor “. The bailee is called the
“pawnee".
[Section 173]-. Pawnee’s right of retainer
The Pawnee may retain the goods pledged, not only for payment of the debt or the
performance of the promise, but for the interest of the debt, and all necessary expenses
incurred by him in respect of the possession or for the preservation of the goods pledged.
[Section 174]- Pawnee not to retain for debt or promise other than that for which
goods pledged. Presumption in case of subsequent advances
The pawnee shall not, in the absence of a contract to that effect, retain the goods pledged
for any debt or promise other than the debt or promise for which they are pledged; but
such contract, in the absence of anything to the contrary, shall be presumed in regard to
subsequent advances made by the pawnee.
[Section 175]-. Pawnee’s right as to extraordinary expenses incurred
The Pawnee is entitled to receive from the pawnor extraordinary expenses incurred by him
for the preservation of the goods pledged.
[Section 176]-. Pawnee’s right where pawnor makes default
If the pawnor makes default in payment of the debt, or performance, at the
stipulated time of the promise, in respect of which the goods were pledged, the pawnee
may bring a suit against the pawnor upon the debt or promise, and retain the goods pledge
as a collateral security; or he may sell the thing pledged, on giving the pawnor reasonable
notice of the sale.
If the proceeds of such sale are less than the amount due in respect of the debt or promise,
the pawnor is still liable to pay the balance. If the proceeds of the sale are greater than the
amount so due, the Pawnee shall pay over the surplus to the pawnor.
[Section 177]-. Defaulting pawn or’s right to redeem
If a time is stipulated for the payment of the debt, of performance of the promise, for
which the pledge is made,' and the pawnor makes default in payment of the debt or
performance of the promise at the stipulated time, he may redeem the goods pledged at
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any subsequent time before the actual sale of them' ; but he must, in that case, pay, in
addition, any expenses which have
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