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Section 169: When finder of thing commonly on sale may sell it

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Act 1872
Section 168 All 266 Sections of Indian Contract Act Section 170
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Contract Sec 2(h)

Legal Commentary & Landmark Judgments: Section 169

Section 169 confers a statutory power of sale upon the finder of a lost article commonly the subject of sale, establishing strict conditions precedent: inability to find the owner with reasonable diligence or owner's refusal to pay lawful charges, coupled with perishability or charges amounting to two-thirds of the article's value.

  • Subject-Matter Commonly on Sale: The lost chattel must be of a type and character that is commonly bought and sold in the open commercial market.
  • Condition Precedent of Search or Refusal: The finder must prove either that the owner could not be found despite the exercise of reasonable diligence, or that the owner, upon demand, refused to pay the lawful preservation charges.
  • Dual Alternative Triggers: Perishability or Two-Thirds Threshold: The sale is lawful only if: (1) the article is in immediate danger of perishing or losing the greater part of its value, or (2) the lawful expenses incurred by the finder equal or exceed two-thirds of the chattel's market value.
Key Landmark Precedents:
  • Armory v. Delamirie (1722) 1 Strange 505: The King's Bench established that a finder possesses a possessory title good against all the world except the true owner, and must act strictly within lawful authority when dealing with or disposing of found property.
  • Bridges v. Hawkesworth (1851) 21 LJ QB 75: The Court held that the finder of lost goods acquires possessory rights and is accountable for wrongful disposition unless statutory requirements for disposal are satisfied.
Courtroom Practice & Strategic Litigation Guidance:

Any sale executed outside the two-thirds cost threshold or absent genuine perishability constitutes civil conversion and potential criminal misappropriation. In litigation challenging a finder's sale, verify public auction notices, valuation reports, and search diligence. If the finder sold through private treaty at an undervalue, sue for conversion damages representing the fair market value minus lawful expenses.

Section 168 All 266 Sections of Indian Contract Act Section 170