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An agent entitled to retain the principal’s goods for unpaid commission voluntarily and unconditionally…

Section 221 gives a possessory right to retain qualifying property. The agent loses this lien on the goods upon unconditional voluntary surrender.

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An agent entitled to retain the principal’s goods for unpaid commission voluntarily and unconditionally returns them to the principal. The parties have made no contrary agreement. What happens to the agent’s lien on those goods?

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Answer and explanation

Correct answer B

Section 221 gives a possessory right to retain qualifying property. The agent loses this lien on the goods upon unconditional voluntary surrender.

Option feedback

Option A

A right to retain the goods depends on possession. It does not continue after the stated unconditional return.

Option B

Section 221 gives a possessory right to retain qualifying property. The agent loses this lien on the goods upon unconditional voluntary surrender.

Option C

Section 221 confers retention, so giving up possession does not turn the lien into a power of sale.

Option D

Section 221 concerns qualifying property received by the agent in respect of which the amount is due.

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