Question

In the absence of any contract to the contrary, the bailee is not required to return to the bailor any increase, or profits which may have accrued from the goods bailed.

• A. False
• B. True
• C. Partly true
• D. None of the above

Answer 1

Answer: (A)

False

Section 163 of Indian Contract Law, 1872, states "Bailor entitled to increase or profit from goods bailed.—In the absence of any contract to the contrary, the bailee is bound to deliver to the bailor, or according to his directions, any increase or profit which may have accrued from the goods bailed."