Question

    When the pawnor has obtained possession of the goods

    pledged by him under a contract voidable under section 19 or section 19A, but the contract has not been rescinded at the time of the pledge, ____________________
    A Pawnee acquires a good title to the goods Correct Answer Incorrect Answer
    B Pawnee does not acquire a good title to the good Correct Answer Incorrect Answer
    C Pawnee acquires a good title to the goods provided he acts in good faith and without notice of the pawnor's defect of title Correct Answer Incorrect Answer
    D Pawnee may acquire a good title to the goods provided he acts in good faith and without notice of the pawnor's defect of title Correct Answer Incorrect Answer

    Solution

    Special Contract Section 178A.   Pledge by person in possession under voidable contract: When the pawnor has obtained possession of the goods pledged by him under a contract voidable under section 19 or section 19A, but the contract has not been rescinded at the time of the pledge, the pawnee acquires a good title to the goods, provided he acts in good faith and without notice of the pawnor's defect of title.

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