Cable to blade engagement is loose or broken
The cable to engage the blade is loose and can be pulled by hand inside housing
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These can be replaced with just a few common tools. They are similar to the break cables on a bike. This is actually a break cable except is is engaged when not pulled, but when you pull it it will allow the motor/blade to turn. Your local Toro dealer (or wherever you purchased the mower) should be able to supply you with one and assist you with information on the repair, because this happens frequently.
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