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The Indian Contract Act, 1872: page 40

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                                                         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 Benares. 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.

   155. Effect of mixture, with bailor’s consent, of his goods with bailee’s.—If the bailee, with the
consent of the bailor, mixes the goods of the bailor with his own goods, the bailor and the bailee shall
have an interest, in proportion to their respective shares, in the mixture thus produced.
    156.Effect of mixture without bailor’s consent, when the goods can be separated.—If the bailee,
without the consent of the bailor, mixes the goods of the bailor with his own goods, and the goods can be
separated or divided, the property in the goods remains in the parties respectively; but the bailee is bound
to bear the expense of separation or division, and any damage arising from the mixture.
                                                          Illustration
     A bails 100 bales of cotton marked with a particular mark to B. B, without A’s consent, mixes the 100 bales with other bales
of his own, bearing a different mark: A is entitled to have his 100 bales returned, and B is bound to bear all the expense incurred
in the separation of the bales, and any other incidental damage.
                                                                                    e
    157. Effect of mixture, without bailor’s consent, when the goods cannot be separated.—If the
                                                                             od
bailee, without the consent of the bailor, mixes the goods of the bailor with his own goods, in such a
                                                                      aC
manner that it is impossible to separate the goods bailed from the other goods, and deliver them back, the
bailor is entitled to be compensated by the bailee for the loss of the goods.
                                                                di
                                                          Illustration
                                                           In
    A bails a barrel of Cape flour worth Rs. 45 to B. B, without A’s consent, mixes the flour with country flour of his own,
worth only Rs. 25 a barrel. B must compensate A for the loss of his flour.

    158. Repayment, by bailor, of necessary expenses.—Where, by the conditions of the bailment, the
goods are to be kept or to be carried, or to have work done upon them by the bailee for the bailor, and the
bailee is to receive no remuneration, the bailor shall repay to the bailee the necessary expenses incurred
by him for the purpose of the bailment.
     159.Restoration of goods lent gratuitously.—The lender of a thing for use may at any time require
its return, if the loan was gratuitous, even though he lent it for a specified time or purpose. But if, on the
faith of such loan made for a specified time or purpose, the borrower has acted in such a manner that the
return of the thing lent before the time agreed upon would cause him loss exceeding the benefit actually
derived by him from the loan, the lender must, if he compels the return, indemnify the borrower for the
amount in which the loss so occasioned exceeds the benefit so derived.
     160.Return of goods bailed, on expiration of time or accomplishment of purpose.—It is the duty
of the bailee to return, or deliver according to the bailor’s directions, the goods bailed, without demand, as
soon as the time for which they were bailed has expired, or the purpose for which they were bailed has
been accomplished.
     1
      161. Bailee’s responsibility when goods are not duly returned.—If, by the default of the bailee,
the goods are not returned, delivered or tendered at the proper time, he is responsible to the bailor for any
loss, destruction or deterioration of the goods from that time.2




1. S. 161 has been declared to apply to the responsibility of the Trustees of the Port of Madras as to goods in their possession
   seethe Madras Port Trust Act, 1905 (Madras Act 2 of 1905).
2. As to Railway contracts, see the Indian Railways Act, 1890 (9 of 1890), s. 72.

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