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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