Meaning and Concept
A finder of goods is a person who comes into possession of goods belonging to another and voluntarily takes custody of them. Though the finder is not the owner, the law recognizes certain rights in his favor. Under Section 168 of the Indian Contract Act, 1872, a finder of goods is subject to the responsibilities of a bailee. This means the finder must take reasonable care of the goods and cannot use them for personal benefit. However, the law also protects the finder’s interests by granting specific rights to ensure fairness and prevent unjust enrichment of the true owner.
Statutory Provision and Legal Framework
The rights of a finder of goods are primarily governed by Sections 168 and 169 of the Indian Contract Act, 1872. Section 168 states that the finder has the same responsibility as a bailee, while Section 169 allows the finder to sue for reward when a reward has been promised for returning the goods. The finder also has the right to file a suit against anyone who wrongfully deprives him of the goods, except the true owner. Courts have consistently held that possession of goods gives the finder a special property right against the whole world except the rightful owner.
Essential Rights and Importance
The essential rights of a finder of goods include the right to lien for reward, right to sue for reward when promised, right to take legal action against wrongful dispossession, and right to necessary expenses incurred for preserving the goods. These rights are important because they encourage honesty and public responsibility. Without legal protection, people would be discouraged from safeguarding lost goods. In examinations, this topic is often tested through problem-based questions involving lost valuables, rewards, and disputes over possession.
Real-Time Example
A real-time example is when a person finds a lost mobile phone in a public place and safely keeps it. If the owner had announced a reward for its return, the finder can lawfully claim the reward under Section 169 of the Indian Contract Act, 1872. If someone forcibly takes the phone from the finder without authority, the finder can sue that person, even though he is not the owner. However, the finder must return the phone to the true owner once identified. This example clearly demonstrates the balance between responsibility and rights of a finder.
Mnemonic to Remember
A simple mnemonic to remember the Rights of Finder of Goods is “L-S-R-E”.
L – Lien for reward
S – Sue for reward (if promised)
R – Right against wrongful dispossession
E – Expenses for preservation
This mnemonic helps students quickly recall the key rights during examinations.
About Lawgnan
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