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CS Professional · Banking and Insurance - Laws and Practice · Advances, Securities and Documentation

Which of the following persons may, in the absence of a contract to the contrary, retain goods bailed to them as security for a general balance of account under section 171 of the Contract Act, 1872?

A banker holding goods of a customer has this right. Section 171 gives a general lien for the general balance of account only to bankers, factors, wharfingers, High Court attorneys and policy-brokers, while others need an express contract.

  1. AA tailor stitching a customer's garments
  2. BA banker holding goods of a customerCorrect
  3. CA carpenter repairing furniture
  4. DA landlord holding a tenant's furniture

Explanation

Section 171 confers a general lien only on bankers, factors, wharfingers, attorneys of a High Court and policy-brokers. Others may retain goods for a general balance only under an express contract. The tailor, carpenter and landlord are not in the listed classes.

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