FINDER OF GOODS

DEFINITION

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.

• 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 FINDERS OF GOODS
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.

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.
RIGHTS OF FINDERS OF GOODS

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
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.

Duty not to make unauthorised use

• 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.
DUTIES OF FINDER OF GOODS

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. 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
. 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.

Duty to Return the goods

• The finder of the goods has to return the goods to the owner of the goods. He is bound to return the goods
but can exercise his right of lien if he is not paid the lawful charges.