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What kind of lien does section 171 of the Indian Contract Act, 1872 recognize for a banker over goods…

Section 171 allows a banker to retain goods bailed to the bank as security for a general balance of account, unless a contract provides otherwise. A general lien can secure…

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What kind of lien does section 171 of the Indian Contract Act, 1872 recognize for a banker over goods bailed to the bank, absent a contract to the contrary?

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Correct answer C

Section 171 allows a banker to retain goods bailed to the bank as security for a general balance of account, unless a contract provides otherwise.

A general lien can secure the balance of account beyond a charge relating to the particular goods.

Option feedback

Option A

Section 171 confers the lien without requiring a written agreement to create it.

Option B

The lien secures a general balance of account.

Option C

Section 171 gives a banker a general lien in the absence of a contract to the contrary.

Option D

Section 171 does not make a decree a condition of the lien.

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