The correct answer is: A. invalid to the extent of that interest.
A pledge is a security interest in personal property that is created by a debtor delivering possession of the property to a creditor. The pledgee (creditor) has a security interest in the property, which means that they have a right to take possession of the property if the debtor defaults on their debt.
If a person pledges goods in which they have only a limited interest, the pledge is invalid to the extent of that interest. For example, if a person owns a car jointly with another person, and they pledge the car to a creditor, the creditor only has a security interest in the person’s share of the car. If the person defaults on their debt, the creditor can only take possession of the person’s share of the car.
The other options are incorrect. Option B is incorrect because the entire contract is not invalid. The pledge is only invalid to the extent of the person’s limited interest. Option C is incorrect because the pledge is not valid to the extent of the person’s limited interest. Option D is incorrect because the entire contract is not valid.