Comprehension
Rule: Whoever finds an unattended object can keep it unless the true owner claims that
object. This does not affect the property owner’s right to the ownership of the property on
which the object is found. The right to ownership of a property does not include the right to
ownership of unattended objects on that property.
Facts: Elizabeth is the CEO of a global management services company in Chennai and is on her way to Ranchi to deliver the convocation address at India’s leading business school on the outskirts of Ranchi. Flying business class on Dolphin Airlines, she is entitled to use the lounge owned by the airline in Chennai Airport while waiting for her flight. She finds a diamond ear-ring on the floor of the lounge and gives it to the staff of Dolphin Airlines expressly stating that in the event of nobody claiming the ear-ring within six months, she would claim it back. The airline sells the ear-ring after eight months and Elizabeth files a case to recover the value of the ear-ring from the airline when she is informed about its sale.
Facts: Elizabeth is the CEO of a global management services company in Chennai and is on her way to Ranchi to deliver the convocation address at India’s leading business school on the outskirts of Ranchi. Flying business class on Dolphin Airlines, she is entitled to use the lounge owned by the airline in Chennai Airport while waiting for her flight. She finds a diamond ear-ring on the floor of the lounge and gives it to the staff of Dolphin Airlines expressly stating that in the event of nobody claiming the ear-ring within six months, she would claim it back. The airline sells the ear-ring after eight months and Elizabeth files a case to recover the value of the ear-ring from the airline when she is informed about its sale.
Question: 1
As a judge you would order that:
As a judge you would order that:
Show Hint
If the finder of an item hands it over with a condition and the other party accepts, that creates a duty. Delayed action or property ownership does not override the finder’s legal rights.
Updated On: Aug 11, 2025
- Elizabeth is not entitled to compensation because the ear-ring was found on the property of the airline and therefore, the airline is entitled to sell it.
- The airline must compensate Elizabeth because owning the lounge does not give the airline the right over all things that might be found on it.
- The airline must compensate Elizabeth because while accepting the ear-ring from Elizabeth they had agreed to return it if nobody claimed it within six months.
- Elizabeth is not entitled to compensation because she did not claim the ear-ring after the expiry of six months and the airline waited for a couple more months before selling it.
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The Correct Option is C
Solution and Explanation
Step 1: Understand the Rule
Whoever finds an unattended object can keep it unless the true owner claims it.
Ownership of the property on which the object is found does not give ownership of the object itself.
Step 2: Key facts from the case
Elizabeth found a diamond ear-ring in the lounge and handed it to Dolphin Airlines.
She stated clearly: if no one claims it within 6 months, she would claim it.
The airline accepted this statement, creating an implicit understanding.
The airline waited 8 months and then sold the ear-ring, violating the 6-month condition.
Step 3: Apply the Rule to the Facts - Elizabeth is the finder and not the property owner — but according to the rule, the finder (unless true owner shows up) retains the right.
- She made it clear she would reclaim the item if unclaimed — and the airline accepted this.
- This agreement creates a duty on the airline to either return or inform her before disposing of the item.
- Selling the ear-ring after 8 months, without giving her the chance to reclaim it, breaches this agreement. Step 4: Eliminate wrong options - (a) Wrong: Property ownership does not override the finder's right. ✗ - (b) Partially true, but vague: It correctly identifies the airline has no ownership, but doesn’t address the agreement made. ✗ - (c) Correct: The best option. It recognizes both the legal rule and the specific facts — a promise was made to return it after 6 months. ✓ - (d) Wrong: Waiting longer than the agreed 6-month limit does not strengthen the airline’s case. ✗ % Final Answer \[ \boxed{\text{(c)}} \]
Whoever finds an unattended object can keep it unless the true owner claims it.
Ownership of the property on which the object is found does not give ownership of the object itself.
Step 2: Key facts from the case
Elizabeth found a diamond ear-ring in the lounge and handed it to Dolphin Airlines.
She stated clearly: if no one claims it within 6 months, she would claim it.
The airline accepted this statement, creating an implicit understanding.
The airline waited 8 months and then sold the ear-ring, violating the 6-month condition.
Step 3: Apply the Rule to the Facts - Elizabeth is the finder and not the property owner — but according to the rule, the finder (unless true owner shows up) retains the right.
- She made it clear she would reclaim the item if unclaimed — and the airline accepted this.
- This agreement creates a duty on the airline to either return or inform her before disposing of the item.
- Selling the ear-ring after 8 months, without giving her the chance to reclaim it, breaches this agreement. Step 4: Eliminate wrong options - (a) Wrong: Property ownership does not override the finder's right. ✗ - (b) Partially true, but vague: It correctly identifies the airline has no ownership, but doesn’t address the agreement made. ✗ - (c) Correct: The best option. It recognizes both the legal rule and the specific facts — a promise was made to return it after 6 months. ✓ - (d) Wrong: Waiting longer than the agreed 6-month limit does not strengthen the airline’s case. ✗ % Final Answer \[ \boxed{\text{(c)}} \]
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Question: 2
Assume now that Elizabeth was only an economy class passenger and was not entitled to use the airline’s lounge.
However, she manages to gain entry and finds the ear-ring in the lounge. The rest of the above facts remain the same.
Will her illegal entry into the Lounge affect Elizabeth’s right to keep the ear-ring (or be compensated for its value)?
Assume now that Elizabeth was only an economy class passenger and was not entitled to use the airline’s lounge.
However, she manages to gain entry and finds the ear-ring in the lounge. The rest of the above facts remain the same.
Will her illegal entry into the Lounge affect Elizabeth’s right to keep the ear-ring (or be compensated for its value)?
Show Hint
As per legal reasoning, the right to ownership of a found item depends on being the finder—not on how or why you were present at the place.
Updated On: Aug 11, 2025
- Yes, the airline claims that Elizabeth’s entry into the lounge was illegal and therefore she has no right over anything she found there.
- No, because Elizabeth’s class of travel has no bearing on the outcome in this case.
- Cannot be determined as we need to know how Elizabeth was able to access the airline’s lounge.
- None of the above.
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The Correct Option is B
Solution and Explanation
Step 1: Revisit the Legal Rule
The finder of an unattended object has the right to it unless the true owner claims it.
This right is not dependent on legal status as a visitor or property entitlement.
Step 2: Analyze the new scenario
Elizabeth was not supposed to be in the lounge — her entry was unauthorized.
However, she still found an object and reported it properly.
The rule does not state that the legality of presence affects the right to found property.
Step 3: Legal outcome - Since the fundamental rule is about being the finder, and not about how you got there, her status as economy passenger is irrelevant.
- Her intentions were not malicious; she acted responsibly by handing over the item.
- Therefore, she still retains her right to compensation or claim. Step 4: Eliminate wrong options - (a) Incorrect: Illegal presence does not cancel the finder's right. ✗ - (b) Correct: Presence or travel class is irrelevant under the stated legal rule. ✓ - (c) Incorrect: Access method is not required to decide — legal rule already applies. ✗ - (d) Incorrect: Already addressed directly in (b). ✗ % Final Answer \[ \boxed{\text{(b)}} \]
The finder of an unattended object has the right to it unless the true owner claims it.
This right is not dependent on legal status as a visitor or property entitlement.
Step 2: Analyze the new scenario
Elizabeth was not supposed to be in the lounge — her entry was unauthorized.
However, she still found an object and reported it properly.
The rule does not state that the legality of presence affects the right to found property.
Step 3: Legal outcome - Since the fundamental rule is about being the finder, and not about how you got there, her status as economy passenger is irrelevant.
- Her intentions were not malicious; she acted responsibly by handing over the item.
- Therefore, she still retains her right to compensation or claim. Step 4: Eliminate wrong options - (a) Incorrect: Illegal presence does not cancel the finder's right. ✗ - (b) Correct: Presence or travel class is irrelevant under the stated legal rule. ✓ - (c) Incorrect: Access method is not required to decide — legal rule already applies. ✗ - (d) Incorrect: Already addressed directly in (b). ✗ % Final Answer \[ \boxed{\text{(b)}} \]
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Question: 3
To the original fact scenario, the following fact is added: In the lounge there are numerous signboards which proclaim
“Any unattended item will be confiscated by Dolphin Airline.” In this case, you would:
To the original fact scenario, the following fact is added: In the lounge there are numerous signboards which proclaim
“Any unattended item will be confiscated by Dolphin Airline.” In this case, you would:
Show Hint
Even if property owners display warning signs, legal ownership of found items belongs to the finder unless the true owner claims them. The key distinction is whether the item is still unattended.
Updated On: Aug 11, 2025
- Order the airline to pay compensation to Elizabeth because the board in the lounge cannot grant property rights over unattended objects to the airline.
- Deny Elizabeth compensation because the signboard makes it evident that the airline, as owner of the lounge, is exercising all rights over all unattended items in the lounge and the ear-ring is one such item.
- Deny Elizabeth compensation because she knew any unattended item belonged to the airline.
- Order the airline to pay compensation to Elizabeth because the property rights of the airline are relevant only if the item is unattended. The moment Elizabeth found the ear-ring, it belonged to her.
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The Correct Option is D
Solution and Explanation
Step 1: Review the Legal Rule
- Whoever finds an unattended object can keep it unless the true owner claims it.
- Ownership of the property (e.g., lounge) does not imply ownership of things found on it.
- The right to ownership of the found item transfers to the finder, not to the property owner.
Step 2: Analyze the Signboard Clause
- The signboard says: “Any unattended item will be confiscated.”
- But the legal rule overrides this — mere signage does not change legal ownership rights.
- Elizabeth found the object and clearly indicated her intention to claim it if unclaimed within 6 months.
- Once she took possession, it was no longer “unattended.”
Step 3: Application
- The ear-ring was not confiscated at the time it was unattended — Elizabeth took possession before that.
- The rule protects her rights as finder.
- The signboard cannot transfer property rights away from the finder back to the property owner.
Step 4: Evaluate Options
- (a) Partially correct, but ignores the significance of when it ceased to be “unattended.” ✗
- (b) Incorrect: The lounge ownership doesn’t override finder's rights. ✗
- (c) Incorrect: She was not told it “belonged” to the airline — signage ≠ legal ownership. ✗
- (d) Correct: Best applies the rule — once found, it is no longer unattended, and thus the sign has no effect. ✓
% Final Answer
\[
\boxed{\text{(d)}}
\]
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