What is a pledge?

The bailment of goods as security for payment of a debt or performance of a promise
The delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the direction of the person delivering them
A contract by which one party promises to save the other from loss caused to him by the contract of the promisor himself, or by the conduct of any other person
A contract to do or not to do something, if some event, collateral to such contract, does or does not happen

The correct answer is: A. The bailment of goods as security for payment of a debt or performance of a promise.

A pledge is a bailment of goods as security for payment of a debt or performance of a promise. The bailor (the person who delivers the goods) is called the pledgor, and the bailee (the person who receives the goods) is called the pledgee. The pledgee has a right to sell the goods if the pledgor does not repay the debt or perform the promise.

Option B is incorrect because it describes a bailment for a specific purpose. A bailment for a specific purpose is a bailment in which the bailee is required to return the goods to the bailor after the purpose has been accomplished.

Option C is incorrect because it describes a suretyship. A suretyship is a contract in which a third party (the surety) agrees to be responsible for the debt or obligation

of another party (the principal).

Option D is incorrect because it describes a conditional contract. A conditional contract is a contract that is contingent on the happening of a certain event.

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