Report No. 20

Clause 16

Para (a).-This embodies the rule that if the hirer makes a default in the payment of hire the owner may terminate the agreement. Though such provisions are usually found in the agreement, it has been considered proper to place this right of the owner on a statutory footing

(There is no such provision in the English Act).

Para (b).-If the bailee does any act with regard to the goods bailed which is inconsistent with the conditions of bailment, the owner has, under section 153 of the Indian Contract Act, the right to terminate bailment. That has been embodied here, with suitable verbal modifications.

Para (c).-This enunciates the rule that if the hirer commits breach of an express condition providing for termination of the agreement providing for its breach, the owner may terminate the agreement.

Section 111(g) of the Transfer of Property Act has been followed as a model, and it has been provided that the termination will be by a notice in writing.

(There is no such provision in the English Act).