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  • A pawnshop owner lends money to a customer in exchange for a valuable item. The customer fails to repay the loan

A pawnshop owner lends money to a customer in exchange for a valuable item. The customer fails to repay the loan within the agreed-upon time. Which of the following rights does the pawnshop owner have in this situation?

Option: 1

Right to sell the item to recover the loan amount


Option: 2

Right to keep the item indefinitely without any consequences


Option: 3

Right to demand additional interest on the loan


Option: 4

Right to sue the customer for breach of contract


Answers (1)

best_answer

Right to sell the item to recover the loan amount. The pawnshop owner has the right to sell the valuable item if the customer fails to repay the loan within the agreed-upon time. This is known as the right of sale. Hence correct option is a.

Posted by

Riya

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