Section 178A of the Indian Contract Act, 1872.

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of the goods pledged by him under a contract voidable under section 19 or section 19A, but the contract has not been rescinded at the time of the pledge, the pawnee acquires a good title to the goods, provided he acts in good faith and without notice of the pawnor’s defect of title.

 

Also Check: The Indian Contract Act Free One Liner Notes

 

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