Indian Contract Act Section 154 — Liability of bailee making unauthorized use of goods bailed

CHAPTER IX OF BAILMENT

Commercial / Corporate

Summary

If a bailee (the person who has been given someone else's goods) uses those goods in a way that goes against the terms of the bailment agreement, the bailee must pay the bailor (the owner who handed over the goods) for any damage that happens to the goods because of that unauthorized use, or even damage that occurs while the goods are being used in that unauthorized way.

Official Text

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