A peasant who could not repay his debt signed his carts and bullocks over to the moneylender, then agreed to pay him four rupees a month for them. What does this show?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → He was paying hire for animals that had once been his own
Option (1) He was buying back his animals in monthly instalments — Incorrect. The deed did not return the animals. It stated that the carts and animals did not belong to him, so his payments never made him the owner again.
Option (2) He was paying monthly interest on the debt he still owed — Incorrect. The deed sold the carts and bullocks on account of the debt, and the four rupees a month were hire for those same animals under a deed of hire.
Option (3) He was pledging the animals as security for a fresh loan — Incorrect. The peasant sold the carts and bullocks outright to the moneylender, and the deed of hire stated that these animals and carts belonged to the moneylender.
Option (4) He was paying hire for animals that had once been his own — Correct. This is a deed of hire. He lost the bullocks for the debt but could not farm without them, so he paid hire for animals that were once his own. Such deeds could be enforced in court.
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