Explain the Rights and Duties of the Finder of Goods.

Duties of the Finder of Goods:

According to Section 71 of the Indian Contract Act, a finder of goods has the following duties with respect to the goods found as that of a bailee, they are:

  • The finder should take reasonable care of the goods found.
  • He should not out the goods for his personal use.
  • He should not mix the goods found with his own goods.
  • He should find the real owner of the goods and then should entrust the goods to him.

Also read | Duties and Rights of a Bailor.

Rights of the Finder of Goods.

Right of lien: Till the time the finder of goods is reimbursed with the amount of expenses incurred by him, he may keep the goods in his possession.

This right is available against the true owner until the finder of goods received compensation with respect to the expenses and trouble incurred by him in finding the true owner as well as in preserving the goods. However, he has no right to sue the actual owner for compensation.

Right to sue for reward: If some reward has been declared by the true owner for the return of the lost goods. then the finder may sue the owner for such award.

Right for sale: A finder of goods may sell the goods found in the following circumstances:

Also read | Define a Contract of Indemnity.

  • Where the true owner can be found with reasonable diligence.
  • The goods found are such as is commonly the subject of sale.
  • The thing is in danger of perishing or of losing the greater part of their value.
  • When the lawful charges for the preservation and finding the goods amounts to two-third of the value of the thing.

Tags: B.Com

Compare items
  • Total (0)