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A purchased a refrigerator on hire purchase from B and pledged with C. D purchased the refrigerator from C in good faith, on knowing the facts B wants to recover the refrigerator from D. Which of the following statement(s) is/are correct?
- a)B can recover the refrigerator from D.
- b)B can recover the refrigerator from A only.
- c)B cannot recover the refrigerator from D.
- d)D will get good title for the refrigerator as he bought it in good faith.
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
A purchased a refrigerator on hire purchase from B and pledged with C....
Explanation:
The given situation involves the concept of hire purchase, pledge, and sale of goods. Let's understand each concept and its relevance in the given situation.
Hire Purchase: It is a type of agreement in which the buyer pays for goods in installments while using them. The ownership of the goods remains with the seller until the buyer pays the final installment.
Pledge: It is a type of security in which the borrower (pledger) gives possession of the goods to the lender (pledgee) as security for a loan. The pledgee has the right to sell the goods in case of default by the pledger.
Sale of Goods: It is a type of agreement in which the ownership of goods transfers from the seller to the buyer in exchange for a price.
Now, let's analyze the given situation based on the above concepts.
A purchased a refrigerator on hire purchase from B and pledged with C. This means that A bought the refrigerator from B but did not pay the full price upfront. Instead, A agreed to pay the price in installments while using the refrigerator. Also, A pledged the refrigerator with C as security for a loan.
D purchased the refrigerator from C in good faith, on knowing the facts. This means that C sold the refrigerator to D without disclosing the fact that the refrigerator was under hire purchase and pledged with C.
B wants to recover the refrigerator from D. This means that B wants to claim back the refrigerator from D as the original owner.
Now, let's analyze the options given in the question.
a) B can recover the refrigerator from D.
This option is correct because B is the rightful owner of the refrigerator and has the right to claim it back from any person who is not the rightful owner.
b) B can recover the refrigerator from A only.
This option is incorrect because A is not the current possessor of the refrigerator. A pledged the refrigerator with C, and C sold it to D. Therefore, B cannot recover the refrigerator from A.
c) B cannot recover the refrigerator from D.
This option is incorrect because B has the right to claim the refrigerator back from D as the rightful owner.
d) D will get good title for the refrigerator as he bought it in good faith.
This option is incorrect because D bought the refrigerator from C, who did not have the right to sell it as it was under hire purchase and pledged with C. Therefore, D cannot claim ownership of the refrigerator in good faith.
Conclusion:
From the above analysis, we can conclude that option 'A' is the correct answer. B can recover the refrigerator from D as the rightful owner.
The given situation involves the concept of hire purchase, pledge, and sale of goods. Let's understand each concept and its relevance in the given situation.
Hire Purchase: It is a type of agreement in which the buyer pays for goods in installments while using them. The ownership of the goods remains with the seller until the buyer pays the final installment.
Pledge: It is a type of security in which the borrower (pledger) gives possession of the goods to the lender (pledgee) as security for a loan. The pledgee has the right to sell the goods in case of default by the pledger.
Sale of Goods: It is a type of agreement in which the ownership of goods transfers from the seller to the buyer in exchange for a price.
Now, let's analyze the given situation based on the above concepts.
A purchased a refrigerator on hire purchase from B and pledged with C. This means that A bought the refrigerator from B but did not pay the full price upfront. Instead, A agreed to pay the price in installments while using the refrigerator. Also, A pledged the refrigerator with C as security for a loan.
D purchased the refrigerator from C in good faith, on knowing the facts. This means that C sold the refrigerator to D without disclosing the fact that the refrigerator was under hire purchase and pledged with C.
B wants to recover the refrigerator from D. This means that B wants to claim back the refrigerator from D as the original owner.
Now, let's analyze the options given in the question.
a) B can recover the refrigerator from D.
This option is correct because B is the rightful owner of the refrigerator and has the right to claim it back from any person who is not the rightful owner.
b) B can recover the refrigerator from A only.
This option is incorrect because A is not the current possessor of the refrigerator. A pledged the refrigerator with C, and C sold it to D. Therefore, B cannot recover the refrigerator from A.
c) B cannot recover the refrigerator from D.
This option is incorrect because B has the right to claim the refrigerator back from D as the rightful owner.
d) D will get good title for the refrigerator as he bought it in good faith.
This option is incorrect because D bought the refrigerator from C, who did not have the right to sell it as it was under hire purchase and pledged with C. Therefore, D cannot claim ownership of the refrigerator in good faith.
Conclusion:
From the above analysis, we can conclude that option 'A' is the correct answer. B can recover the refrigerator from D as the rightful owner.
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Community Answer
A purchased a refrigerator on hire purchase from B and pledged with C....
Yes B can recover, as in hire purchase system ownership does not transfer till the full payment is made and it is the property of B.
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A purchased a refrigerator on hire purchase from B and pledged with C. D purchased the refrigerator from C in good faith, on knowing the facts B wants to recover the refrigerator from D. Which of the following statement(s) is/are correct?a)B can recover the refrigerator from D.b)B can recover the refrigerator from A only.c)B cannot recover the refrigerator from D.d)D will get good title for the refrigerator as he bought it in good faith.Correct answer is option 'A'. Can you explain this answer?
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A purchased a refrigerator on hire purchase from B and pledged with C. D purchased the refrigerator from C in good faith, on knowing the facts B wants to recover the refrigerator from D. Which of the following statement(s) is/are correct?a)B can recover the refrigerator from D.b)B can recover the refrigerator from A only.c)B cannot recover the refrigerator from D.d)D will get good title for the refrigerator as he bought it in good faith.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A purchased a refrigerator on hire purchase from B and pledged with C. D purchased the refrigerator from C in good faith, on knowing the facts B wants to recover the refrigerator from D. Which of the following statement(s) is/are correct?a)B can recover the refrigerator from D.b)B can recover the refrigerator from A only.c)B cannot recover the refrigerator from D.d)D will get good title for the refrigerator as he bought it in good faith.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A purchased a refrigerator on hire purchase from B and pledged with C. D purchased the refrigerator from C in good faith, on knowing the facts B wants to recover the refrigerator from D. Which of the following statement(s) is/are correct?a)B can recover the refrigerator from D.b)B can recover the refrigerator from A only.c)B cannot recover the refrigerator from D.d)D will get good title for the refrigerator as he bought it in good faith.Correct answer is option 'A'. Can you explain this answer?.
A purchased a refrigerator on hire purchase from B and pledged with C. D purchased the refrigerator from C in good faith, on knowing the facts B wants to recover the refrigerator from D. Which of the following statement(s) is/are correct?a)B can recover the refrigerator from D.b)B can recover the refrigerator from A only.c)B cannot recover the refrigerator from D.d)D will get good title for the refrigerator as he bought it in good faith.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A purchased a refrigerator on hire purchase from B and pledged with C. D purchased the refrigerator from C in good faith, on knowing the facts B wants to recover the refrigerator from D. Which of the following statement(s) is/are correct?a)B can recover the refrigerator from D.b)B can recover the refrigerator from A only.c)B cannot recover the refrigerator from D.d)D will get good title for the refrigerator as he bought it in good faith.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A purchased a refrigerator on hire purchase from B and pledged with C. D purchased the refrigerator from C in good faith, on knowing the facts B wants to recover the refrigerator from D. Which of the following statement(s) is/are correct?a)B can recover the refrigerator from D.b)B can recover the refrigerator from A only.c)B cannot recover the refrigerator from D.d)D will get good title for the refrigerator as he bought it in good faith.Correct answer is option 'A'. Can you explain this answer?.
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