Question

A person X finds lost goods and keeps them in his possession. He is legally known as

• A. trustee
• B. guardian
• C. owner
• D. bailee

Hint:

Remember Section 71: "Finder of goods = Bailee".
They must take the same care of the found items as they would of their own personal property.
This simple rule of bailment prevents theft or neglect of lost property.

Answer 1

The Correct Option is D

Step 1: Understanding the Question:
The question is based on the Law of Contracts, specifically the special contract of "Bailment" under the Indian Contract Act, 1872.
We need to determine the legal status of a finder of lost goods.

Step 2: Key Concept or Approach:
Section 71 of the Indian Contract Act, 1872, governs the responsibility of a finder of goods.
The law imposes a quasi-contractual obligation on the finder to return the goods to the true owner.

Step 3: Detailed Explanation:

• According to

Section 71 of the Indian Contract Act:
- "A person who finds goods belonging to another, and takes them into his custody, is subject to the same responsibility as a

bailee."

• A

bailee is a person to whom goods are delivered for some purpose, under a contract that they shall be returned when the purpose is accomplished.

• Since the finder is treated as a bailee, they have certain duties and rights:
-

Duties: Take reasonable care of the goods (as an ordinary prudent man), trace the true owner, and not use the goods for personal use.
-

Rights: Retain the goods against everyone except the true owner, claim necessary expenses incurred in preserving the goods, and sell the goods if they are perishable or if the owner refuses to pay lawful charges (Section 169).

• Let us evaluate the options:
-

Option (A): "trustee" - Incorrect. While a finder has trust-like duties, the specific statutory term under Section 71 is "bailee".
-

Option (B): "guardian" - Incorrect, as guardianship applies to minors or persons of unsound mind, not lost goods.
-

Option (C): "owner" - Incorrect. The finder does not become the owner, although they have possessory rights against the rest of the world.
-

Option (D): "bailee" - Correct.


Step 4: Final Answer:
A finder of lost goods is legally treated as a bailee, which corresponds to Option (D).