New Enroll for RBI, PFRDA & NABARD Intro Class! April 18 at 9:15 PM

    Question

    In the absence of an explicit contract, under what

    condition can a pawnee retain goods pledged for a debt as per the Special Contract Act?
    A The pawnee can retain the goods for any debt owed by the pledgor, regardless of whether it was the specific debt for which the goods were originally pledged Correct Answer Incorrect Answer
    B The pawnee cannot retain the goods for any debt other than the one for which they were pledged, unless there is a contract specifying otherwise or a presumption arises regarding subsequent advances made by the pawnee Correct Answer Incorrect Answer
    C The pawnee may retain the goods for any debt or promise, provided the pledgor owes multiple debts, without the need for an explicit contract Correct Answer Incorrect Answer
    D The pawnee can only retain the goods for subsequent advances if a new contract is made after the original pledge, regardless of any presumptions Correct Answer Incorrect Answer
    E The pawnee is entitled to retain the goods for future debts of the pledgor as a matter of right, even without a contract to that effect Correct Answer Incorrect Answer

    Solution

    Section 174.   Pawnee not to retain for debt or promise other than that for which goods pledged: The pawnee shall not, in the absence of a contract to that effect, retain the goods pledged for any debt or promise other than the debt or promise for which they are pledged; but such contract, in the absence of anything to the contrary, shall be presumed in regard to subsequent advances made by the pawnee.

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