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      Question

      Which of the following best describes a Pledgee?

      A The person who gives some goods as security for payment of a debt taken by him Correct Answer Incorrect Answer
      B The person who receives the goods as security for payment of a debt given by him Correct Answer Incorrect Answer
      C The person who pays to the cheque holder or draft holder Correct Answer Incorrect Answer
      D The person who receives payment against a cheque or draft Correct Answer Incorrect Answer
      E The maker of a promissory note Correct Answer Incorrect Answer

      Solution

      Indian Contract Act – Section 172 – The bailment of goods as security for payment of a debt or performance of a promise is called 'pledge'. The person delivering the goods as security for a debt taken is known as the pledgor or pawnor. The person to whom they are delivered as security against a loan, is called pledgee or pawnee.

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