Section 173 The Indian Contract Act, 1872
📜 Section 173 – The Indian Contract Act, 1872
🔍 Section 173 – Bailor’s Right to Terminate Bailment
"The bailor may, after the delivery of the goods, terminate the bailment and demand the return of the goods at any time, if the bailment is gratuitous or if the bailment is for a specified period and such period has expired."
✅ Explanation:
This section deals with bailment, which is a contract where the bailor delivers goods to the bailee for some purpose, under an agreement that the goods will be returned or otherwise dealt with after the purpose is fulfilled.
If the bailment is gratuitous (i.e., without consideration/payment), the bailor can terminate at any time and ask for the goods back.
If the bailment is for a fixed period, the bailor can demand the goods back once that period is over.
🔑 Key Points:
Applies to gratuitous bailments and bailments for a specific term.
Bailor has the right to terminate and demand the return of goods.
The bailee must return the goods accordingly.
🧠 Illustration:
If you lend your bicycle to a friend without charging any rent (gratuitous bailment), you can ask for it back anytime.
If you rent your bicycle to someone for one month, you can ask for it back after the month ends.
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