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Section 178A, Contract Act 1872: Pledge By Person In Possession Under Voidable Contract

Section 178A under the Chapter IX (Of bailment) of the Contract Act, 1872 of India - 'Pledge by person in possession under voidable contract', is reproduced hereunder:—

“When the pawnor has obtained possession of the goods pledged by him under a contract voidable under section 19 or section 19A, but the contract has not been rescinded at the time of the pledge, the pawnee acquires a good title to the goods, provided he acts in good faith and without notice of the pawnor's defect of title.”

Extra Notes for Readers

(1) Section 178A was inserted by Act 4 of 1930.

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