Under Section 173, a pawnee may retain pledged goods for all of the following EXCEPT:
APunitive damages for an unrelated tort committed by the pawnor
BPayment of the underlying debt
CInterest on the debt
DNecessary expenses for preservation of the pledged goods
Answer & Solution
Correct answer: A. Punitive damages for an unrelated tort committed by the pawnor
1. Section 173 lists three retainable items: the debt, interest on it, and necessary expenses.
2. Retention extends to expenses incurred for possession or preservation of pledged goods.
3. Unrelated punitive damages fall outside Section 173's retention right.
_Source: ICMAI BoS CMA Foundation Paper 1 (Business Laws), Module 2 §2.7 (Indemnity/Guarantee/Pledge/Agent), p. 91-99_
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