Chapter IX - Of Bailment
Section 153
Section 153: Acts inconsistent with bailment conditions
An act inconsistent with bailment conditions makes the contract avoidable at the bailor’s option.
On this page
Need advice on Section 153?
This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
A contract of bailment is avoidable at the option of the bailor, if the bailee does any act with regard to the goods bailed, inconsistent with the conditions of the bailment.
Illustration
A lets to B, for hire, a horse for his own riding. B drives the horse in his carriage. This is, at the ‘option of A, a termination of the bailment.
Rule and business relevance
The bailor has a choice whether to avoid the contract when the bailee deals with the goods inconsistently with the agreed conditions. The statutory example distinguishes riding from using the hired horse in a carriage.
Limits and related provisions
Avoidable does not mean automatically terminated in every case. Keep the bailor’s decision and any separate damage claim distinct.
Hypothetical business example
Hypothetical example: A vehicle lent for a defined private use is put to a prohibited commercial use. The owner considers the option to end the bailment and the resulting return arrangements.
Practical decision flow
Identify the agreed conditions.
Record the inconsistent act.
Document the bailor’s election and return directions.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Identify the agreed conditions.
- Record the inconsistent act.
- Document the bailor’s election and return directions.
Avoid
- Avoidable does not mean automatically terminated in every case. Keep the bailor’s decision and any separate damage claim distinct.
Glossary
- Avoidable
- Capable of being avoided by the party given the choice.
- Inconsistent act
- Conduct concerning the goods contrary to the bailment conditions.
Frequently asked questions
Who has the option?
The bailor.
Is termination always automatic?
No. The section makes the contract avoidable at the bailor’s option.
Is damage required by the wording to trigger the option?
The stated trigger is an act inconsistent with the conditions of bailment.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026