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What is the specific name for a bailment of goods to secure payment of a debt?

A pledge is the specific form of bailment defined in section 172 of the Indian Contract Act, 1872. Here the goods are bailed as security for payment of a debt.

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What is the specific name for a bailment of goods to secure payment of a debt?

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Correct answer C

A pledge is the specific form of bailment defined in section 172 of the Indian Contract Act, 1872. Here the goods are bailed as security for payment of a debt.

Option feedback

Option A

Safekeeping describes custody for a different purpose. The stated purpose is security for a debt.

Option B

A mortgage under section 58 of the Transfer of Property Act, 1882 concerns an interest in specific immovable property.

Option C

Section 172 calls bailment of goods to secure a debt or performance of a promise a pledge.

Option D

Hypothecation under section 2(1)(n) of the SARFAESI Act, 2002 creates a charge on movables without delivery of possession.

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