Pledge, as defined in Section 172, is the bailment of goods as security for:
AOutright sale to a buyer
BPayment of a debt or performance of a promise
CGift inter vivos to a relative
DInheritance after death
Answer & Solution
Correct answer: B. Payment of a debt or performance of a promise
1. Section 172 defines pledge.
2. The bailment must be for a security purpose.
3. Specifically, securing repayment of a debt or fulfilment of a promise.
_Source: ICMAI BoS CMA Foundation Paper 1 (Business Laws), Module 2 §2.7 (Indemnity/Guarantee/Pledge/Agent), p. 91-99_
Related questions
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