What is the extent of a pledge made by a pawnor who has only a limited interest in the goods, under…

Section 179 allows the pawnor to pledge the interest they actually have in the goods. The pledge does not extend to the rest of the owner’s interest.

Choose your answer

What is the extent of a pledge made by a pawnor who has only a limited interest in the goods, under section 179 of the Indian Contract Act, 1872?

Answer and explanation

Correct answer A

Section 179 allows the pawnor to pledge the interest they actually have in the goods. The pledge does not extend to the rest of the owner’s interest.

Option A

Section 179 validates the pledge to the extent of the pawnor’s own interest.

Option B

Section 179 does not enlarge the pawnor’s limited interest to full ownership.

Option C

The statutory limit is the pawnor’s interest in the goods. The amount repaid does not set that limit.

Option D

A pawnor’s limited interest is enough to support a pledge within that interest.