Problems based on Contract and Solution-11
Indian Contract Act, 1872
Dr. Tanmoy Mukherjee
Advocate
Problems based on Contract and Solution-11
Tanmoy Mukherjee
Advocate
Question- P lends a car to S for going to college in Calcutta but he allows T to take his car to Banaras. The Car meets with an accident discuss the legal position of this case?
→P lends a car to S for going to college in Calcutta but S allows T to take the car to Banaras.
The car meets with an accident.
Legal Issue-
Whether S is liable for loss caused by unauthorized use of goods bailed.
Relevant law-
Section 154, Indian Contract Act 1872, if the bailee makes unauthorized use of the goods, he is liable for any loss, even if such loss occurs without negligence.
Application of the provisions-
→P lent the car to S for a specific purpose (going to college in Calcutta).
→S breached the terms of bailment by allowing T to take the car to Banaras.
→This is a clear case of unauthorized use.
→The accident occurred during such unauthorized use.
Conclusion-
→ S is absolutely liable to P for the loss of the car.
→ It is immaterial whether the accident was due to negligence or not.
→ P can claim full compensation from S.
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