Question

Pari passu means:

• A. On an unequal status
• B. Diverse nature
• C. On equal footing
• D. Supremacy of law

Hint:

“Pari passu” is common in finance and contract law — it means no one gets priority, everyone proceeds equally.

Answer 1

The Correct Option is C

The Latin phrase “Pari passu” is made of “pari” meaning “equal” and “passu” meaning “step” or “pace”.
Its literal translation is “with equal step” or “side by side”.
In legal and financial contexts, it means “on equal footing” — that parties share the same rights, obligations, or claims without preference over one another.
For example, in bankruptcy proceedings, creditors who rank pari passu are entitled to be paid at the same time and in proportion to their claims.
Option (a) “On an unequal status” is the direct opposite.
Option (b) “Diverse nature” has nothing to do with equality or rights.
Option (d) “Supremacy of law” refers to legal hierarchy, not equality among parties.
Thus, the correct meaning is “On equal footing”.