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Goods are delivered on 'sale for cash only or return' with an express term that they remain the seller's property until paid for. Before paying, the buyer pledges them. Here:
AProperty did not pass (retention of title), the pledge is invalid, and the seller can recover the goods
BThe seller can only claim the price
CThe pledge is valid
DThe buyer gets good title
Answer & Solution
Correct answer: A. Property did not pass (retention of title), the pledge is invalid, and the seller can recover the goods
A retention-of-title term prevents property from passing until cash is paid; so the buyer could not pass title, the pledge is invalid and the seller can recover the goods.
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