Section 174 The Indian Contract Act, 1872

Section 174 of The Indian Contract Act, 1872 deals with the right of a finder of goods.

πŸ“œ Section 174 – Finder of goods, when entitled to retain them

"When goods are found, the finder is entitled to retain them until the owner pays him the charges and expenses reasonably incurred in preserving them."

βœ… Explanation:

If a person finds goods belonging to someone else, the finder has a right to keep possession of those goods.

The finder can hold on to the goods until the rightful owner pays for the reasonable expenses or charges the finder incurred in taking care of those goods.

This right acts as a lien on the goods for the finder’s expenses.

πŸ“Œ Illustration:

A finds a lost bicycle on the street and keeps it safe.

A spends β‚Ή500 on repairs and safekeeping.

If the owner claims the bicycle, A can ask the owner to pay the β‚Ή500 before returning it.

 

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