Multiple choice

A pledge is bailment of goods to secure a loan. The goods are delivered by the owner to the creditor. These parties as per Section 172 of Indian Contract Act are called

  1. bailor and bailee

  2. bailee and bailor

  3. pledger and pledgee

  4. pawner and pawnee

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

As per Section 172 of Indian Contract Act, 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 "pawner". The bailee is called the "pawnee".