Section154
The Indian Contract Act, 1872

Liability of bailee making unauthorized use of goods bailed

In force From 01 Sep 1872 Act 9 of 1872 As on 18 Oct 2026

Act 9 of 1872 Ministry Law and Justice Enacted 25 Apr 1872 In force 01 Sep 1872

Section 154 of the Indian Contract Act, 1872 deals with liability of bailee making unauthorized use of goods bailed. 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. The Act came into force on 01 Sep 1872.

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

(a) A lends a horse to B for his own riding only. B allows C, a member of his family, to ride the horse. C rides with care, but the horse accidentally falls and is injured. B is liable to make compensation to A for the injury done to the horse.

(b) A hires a horse in Calcutta from B expressly to march to Benares. A rides with clue care, but marches to Cuttack instead. The horse accidentally falls and is injured. A is liable to make compensation to B for the injury to the horse.

Section 154, The Indian Contract Act, 1872 (Act 9 of 1872).

Questions about Section 154

What does Section 154 of the Indian Contract Act deal with?

Section 154 of the Indian Contract Act is headed "Liability of bailee making unauthorized use of goods bailed". 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.

How do I find court cases under Section 154 of the Indian Contract Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Contract Act 154, section 154 Contract Act, section 154 of the Indian Contract Act. People searching for it also type indian contract act section 154. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

When did Section 154 of the Indian Contract Act come into force?

Section 154 of the Indian Contract Act, cited as Contract Act 154, came into force on 01 Sep 1872, having been enacted on 25 Apr 1872. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 18 Oct 2026. This page is not a substitute for legal advice.