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Under Section 178A, where the pawnor obtained the goods under a contract voidable for fraud/coercion that has not yet been rescinded, the pawnee:
AAcquires a good title if he acts in good faith and without notice of the defect
BGets no title at all
CMust return the goods at once
DAcquires title only with the true owner's consent
Answer & Solution
Correct answer: A. Acquires a good title if he acts in good faith and without notice of the defect
Section 178A protects a pawnee who, in good faith and without notice, takes a pledge from a pawnor holding under a voidable but un-rescinded contract; the pawnee gets a good title.
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