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.
CHAPTER IX OF BAILMENT
Section 159: Restoration of goods lent gratuitously
Questions on this section
1 question in 8 of our papers cite Section 159. Try these from the free papers:
1. A lends his tractor to B free of charge for one month to plough B's field. Relying on the loan, B engages labourers for the whole month. After one week, A demands the tractor back. Its return before the agreed time would cause B a loss of Rs. 9,000, while the benefit B has actually derived from the loan is Rs. 3,000. Under Section 159 of the Indian Contract Act, 1872: