Multiple choice

Which of the following persons can make a valid pledge?

  1. Owner of the goods

  2. A mercantile agent

  3. Co-owner in possession

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

As a rule, pledge can be made only by the owner of the goods. But, there are certain exceptions to this general rule. Hence, the following persons can also make a valid pledge:

  1. Mercantile agent
  2. Pledge by persons in possession of goods under a voidable contract
  3. Pledge by a person having only a limited interest
  4. Pledge by a co-owner in possession
  5. Pledge by seller in possession of goods after sale
  6. Pledge by buyer in possession of goods before sale

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