Section 159 of ICA : Section 159: Restoration Of Goods Lent Gratuitously

Explanation using Example

Imagine Rahul lends his bicycle to his neighbor, Aman, for free to use for a week. This is a gratuitous loan. Two days later, Rahul decides he wants to go for a bike ride and asks Aman to return the bicycle immediately. According to Section 159 of the Indian Contract Act, 1872, Rahul, as the lender, has the right to demand the return of the bicycle at any time, even though he initially agreed to lend it for a week.

However, if Aman had made plans based on the availability of the bicycle, such as delivering food parcels for a local charity event that day, and returning the bicycle early would cause him to incur losses (like having to rent a bike or losing the payment for the delivery), Rahul would be required to compensate Aman for the loss that exceeds the benefits Aman received from the bicycle loan.