Indian Contract Act, 1872
154. 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.
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
Banaras. A rides with due 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.