Multiple choice

A bank can exercise its right of general lien u/s 171 of Indian Contract Act, 1872

(a) if the goods are received in normal course of business (b) in the capacity of a banker (c) either as security for loan or for safe custody (d) is the loan is due for recovery

  1. (a) to (d) all

  2. (a), (b) and (c)

  3. (a), (b) and (d)

  4. (b), (c) and (d) correct
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Section 171 in The Indian Contract Act, 1872 General lien of bankers, factors, wharfingers, attorneys and policy-brokers — Bankers, factors, wharfingers, attorneys of a High Court and policy-brokers may, in the absence of a contract to the contrary, retain as a security for a general balance of account, any goods bailed to them; but no other person has a right to retain, as a security for such balance, goods bailed to them, unless there is an express contract to that effect.

Keep practicing — related questions