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Under Section 176, if the pawnor defaults, the pawnee may sue on the debt and retain the goods as collateral, or:
ASell the goods after giving the pawnor reasonable notice, paying any surplus to the pawnor
BKeep the goods as his own absolutely
CDestroy the goods
DSell without any notice
Answer & Solution
Correct answer: A. Sell the goods after giving the pawnor reasonable notice, paying any surplus to the pawnor
Section 176 lets the pawnee either sue and retain the goods, or sell them on reasonable notice; surplus goes to the pawnor and any deficit remains recoverable from him.
Related questions
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