New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    The bailment of goods as security for payment of a debt

    or performance of a promise is called
    A Hypothecation Correct Answer Incorrect Answer
    B Mortgage Correct Answer Incorrect Answer
    C Guarantee Correct Answer Incorrect Answer
    D Pledge Correct Answer Incorrect Answer
    E Indemnity Correct Answer Incorrect Answer

    Solution

    Section 172 in The Indian Contract Act, 1872 172. ‘Pledge’, ‘pawnor’ and ‘pawnee’ defined.—The bailment of goods as security for payment of a debt or performance of a promise is called ‘pledge’. The bailor is in this case called the ‘pawnor’. The bailee is called ‘pawnee’. —The bailment of goods as security for payment of a debt or performance of a promise is called ‘pledge’. The bailor is in this case called the ‘pawnor’. The bailee is called ‘pawnee’."

    Practice Next