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Question

When the pawnor has obtained possession of the goods pledged by him under a contract voidable but the contract under section 19 or section 19A has not been rescinded at the time of the pledge, the pawnee______________

A Acquires a good title to the goods Correct Answer Incorrect Answer
B Does not acquire a good title to the goods Correct Answer Incorrect Answer
C 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 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
E Shall at the discretion of the parties to the contract 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

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of the goods pledged by him under a contract voidable under section 19 or section 19A, but the contract has not been rescinded at the time of the pledge, the pawnee acquires a good title to the goods, provided he acts in good faith and without notice of the pawnor's defect of title.

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