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Which modes of delivery of possession can create a pledge of goods under the Indian Contract Act, 1872?

A pledge is a bailment of goods as security. Possession can be delivered by handing over the goods or through another act that puts them in the possession of the pledgee or…

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Which modes of delivery of possession can create a pledge of goods under the Indian Contract Act, 1872?

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Answer and explanation

Correct answer B

A pledge is a bailment of goods as security. Possession can be delivered by handing over the goods or through another act that puts them in the possession of the pledgee or a person authorised to hold them on the pledgee's behalf.

Option feedback

Option A

A transfer of possession can occur through an act having that effect without a physical handover.

Option B

Sections 149 and 172 together allow actual or constructive delivery of possession for a pledge.

Option C

Physical handover is also capable of delivering possession.

Option D

A pledge is a bailment by way of security, which requires delivery of possession.

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