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Chapter V - Of Certain Relations Resembling Those Created by Contract

Section 71

Section 71: Responsibility of a finder of goods

Section 71 gives a finder of another person's goods the responsibility of a bailee when the finder takes them into custody. Finding the goods does not itself turn the finder into their owner.

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Need advice on Section 71?

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.

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Statutory text

Bare law

A person who finds goods belonging to another, and takes them into his custody, is subject to the same responsibility as a bailee.

Rule and business relevance

The trigger combines finding goods belonging to someone else and taking them into custody. The bailee framework then supplies the relevant responsibilities, while other provisions separately address a finder's rights.

Limits and related provisions

Do not infer a free right to use, sell or keep the goods from the fact of finding them. Care, return, retention and any sale question require the applicable bailment and finder provisions, including Sections 168 and 169 where relevant.

Hypothetical business example

Hypothetical: a business employee finds a customer's equipment and the business takes custody. It safeguards and records the item and seeks the proper owner rather than using it as unclaimed stock.

Practical decision flow

Record the circumstances of finding the goods and taking custody.

Safeguard them according to the applicable bailee responsibilities and identify the owner through lawful means.

Check the specific finder-right provisions before asserting retention, reward or any sale power.

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

  • Record the circumstances of finding the goods and taking custody.
  • Safeguard them according to the applicable bailee responsibilities and identify the owner through lawful means.
  • Check the specific finder-right provisions before asserting retention, reward or any sale power.

Avoid

  • Do not infer a free right to use, sell or keep the goods from the fact of finding them. Care, return, retention and any sale question require the applicable bailment and finder provisions, including Sections 168 and 169 where relevant.

Glossary

Finder in custody
A finder who has taken possession of goods belonging to another.
Bailee responsibility
The responsibility attached by Section 71 through the law of bailment.

Frequently asked questions

Does finding goods automatically transfer ownership?

No. Section 71 imposes responsibility; it does not grant ownership.

When does this provision attach?

When a person finds another's goods and takes them into custody.

Does Section 71 alone authorise a sale?

No. Any claimed sale right must be examined under the specific applicable provisions.

Need help applying this provision to your situation?

Contact Bizeneed

Last updated 10 October 2026