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Principle: Bailment is the delivery of goods by one to another, for some purpose, on a contract that the goods shall be returned. Pledge is bailment of goods as security for payment of a debt. Facts: D leaves his gold ring with E, a pawnbroker, for Rs 50,000 cash; D agrees to redeem it later by paying the sum plus interest. This transaction is

AA sale
BA gift
CA simple bailment
DA PLEDGE — bailment of goods as security for a debt; Sections 172-181 Indian Contract Act govern
Answer & Solution
Correct answer: D. A PLEDGE — bailment of goods as security for a debt; Sections 172-181 Indian Contract Act govern
Section 172 ICA defines pledge as bailment of goods as security for a debt or promise. The pawnor (D) and pawnee (E) have specific rights — E can retain the goods, sue for the debt or sell on default after notice. Pledge differs from simple bailment by the security element.
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