Multiple choice

A finder of goods is

  1. Entitled to claim compensation

  2. Entitled to retain the goods

  3. Not entitled to claim compensation and thus not entitled to retains the goods

  4. Both (a) and (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under Indian Contract Act, a finder of goods is entitled to retain the goods as a bailee until the true owner claims them. This is known as the 'right of lien' - the finder can hold the goods until they receive compensation for expenses incurred in preserving the goods. Option A is incomplete, and option D incorrectly states both.

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