Who is the finder of Goods?
Any person who finds the goods belonging to another person and takes the goods in his custody is the finder of goods.
For Example, A found a wallet belonging to B on the road, A picked the purse. Here, A is the finder of the goods.
Rights and Duties
According to Section 71 of the Indian Contract Act, if a person finds the goods belonging to another person and takes the goods in his custody then he has the same responsibility as a bailee.
Rights of the Finder of Goods
The rights of the finder of goods are the same as that of the bailee. These are discussed in detail below:
1. Right of lien
According to Section 168 of the Indian Contract Act, the finder of the goods has no right to sue the owner of the goods for compensation for the trouble and expenses that have been incurred by him voluntarily. However, he has the right to retain the goods unless the compensation is paid to him.
For example, If A the finder of goods belonging to B has incurred expenses for preserving the gold chain of B, then B can not sue B for the compensation but can only retain the goods unless such an amount is paid to A by B.
2. May sue for a specific reward
Under section 168 of the Indian Contract Act, the finder of goods can sue the owner of the goods if he has offered a specific reward for the return of the goods lost. He also has the right to retain the goods unless he receives the reward offered. Thus, if a reward is offered by the owner then the finder has both the rights (i) right of lien (ii) right to sue.
Thus, If A found a wallet belonging to B. B advertises that he will pay a sum of ₹1,000 to a person whosoever finds the wallet and return it. Here, if B denies paying the rewarded sum then A has two options with him (i) He has the right to sue B for the reward offered and, (ii) He has the right to retain the wallet unless B pays the reward.
3. When finder of thing commonly on sale may sell it
According to Section 169 of the Indian Contract Act, if the finder of goods is unable to find the true owner after due diligence or if the owner refuses to pay the lawful charges to the finder then he may sell the goods if:
- The thing is perishable or is such of nature that it will lose the greater part of its value.
- When lawful charges of the finder amount to two-thirds of the value of goods.
Duties of Finder of Goods
Duties of the finder of goods are the same as of the bailee. The duties are discussed in detail below:
1. Duty to take reasonable care
Section 151 of the Indian Contract Act lays down that the bailee is required to take reasonable care of the goods as he would have taken the care of goods under similar circumstances. Thus, the finder of goods is required to take reasonable care of goods as he would have taken of his goods.
Section 152 of the Act lays down that if there was not a special contract to the contrary then the bailee can not be made liable for the loss, destruction or deterioration of the goods provided that he has taken the due care of the goods.
Burden of Proof
The burden of proof that the reasonable care was taken by the finder of goods is on the finder if he proves the same then he will not be liable.
According to Section 154 of the Indian Contract Act states that if a person makes the unauthorised use of goods then he will be liable to make compensation to the bailor for any damage caused to the goods. Thus, any unauthorised use of the goods will make the bailee absolutely liable.[1]
3. Duty not to mix
The finder of goods is bound not to mix the goods with his goods. If the goods are mixed with the consent of the owner then both the owner and the finder will have a proportional share in the mixture thus produced.[2] If the goods mixed are of such a nature that they can be separated from the goods of the finder then the finder of goods will be liable to pay any such amount which is incurred for the separation of goods.[3] However, if the goods mixed are of such a nature that they can not be separated from the goods of the finder then the finder of the goods is required to compensate the owner of the goods for the loss of goods.[4]
4. Duty to Return the goods
The finder of the goods has to return the goods to the owner of the goods.[5] He is bound to return the goods but can exercise his right of lien if he is not paid the lawful charges.
5. Duty to return the increase
The finder of goods is bound to return any profit or increase from the goods to the owner of the goods.[6]
Thus, if A has found the cow belonging to X, and the cow has a calf. Here, A is bound to return the cow along with the calf. A will not become the owner of the calf.
Read – Free Consent – Section 14 of Indian Contract act, 1872
[1] Avtar Singh, Contract & Specific Relief, Bailment, Ed. 12, 690
[2] Section 155, Indian Contract Act 1872
[3] Section 156, Indian Contract Act 1872
[4] Section 157, Indian Contract Act 1872
[5] Section 160, Indian Contract Act 1872
[6] Section 163, Indian Contract Act 1872
