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Section 154 of Indian Contract Act

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.

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 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.

Varun Kumar Jha

Varun Kumar Jha is a Legal Researcher and the founder of LLB Varun. The content is written and reviewed by , a dedicated legal author with an LL.B. background from Karnataka State Law University (KSLU). You can review and verify the statutory language directly within the Ministry of Home Affairs Official Gazette Document. 🌐 Connect: LinkedIn | Contact Editor.

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