Question
Legal Studies Question on Laws of Contract
The following is true about pawnor and pawnee under Indian Contract Act, 1872:
A
The pawnor has the right of possession, enjoyment, and disposition of the property.
B
The pawnee has a limited right to retain possession till the debt is paid off.
C
The pawnee’s right of disposition is limited to the disposition of the pledge rights only, and the right to sell after giving reasonable notice to the pawnor.
D
All of the above.
Answer
All of the above.
Explanation
Solution
Under the Indian Contract Act, 1872, the pawnor (the pledgor) has the right of possession and enjoyment of the pledged property, while the pawnee (the pledgee) has a limited right to retain possession until the debt is repaid. The pawnee may also sell the pledged property after giving reasonable notice to the pawnor.