CMA Foundation · Fundamentals of Business Laws and Business Communication · Meaning of Indemnity, Guarantee, Pledge, Agent
Ramesh delivers his gold chain to a financier, Mahesh Finance, as security for a loan of Rs 50,000. In the terminology of the Act, Ramesh is the:
Ramesh is the pawnor. In a pledge, the person who bails the goods as security for a debt is the bailor, called the pawnor, while the person receiving the goods, here Mahesh Finance, is the bailee, called the pawnee.
- APawnee
- BPawnorCorrect
- CSurety
- DPrincipal debtor
Explanation
In a pledge the bailor is called the pawnor and the bailee the pawnee. Ramesh delivers the goods as bailor, so he is the pawnor. Calling him pawnee reverses the roles; surety and principal debtor belong to guarantee.
Did you get it right without looking?
One question tells you little. A timed set on Meaning of Indemnity, Guarantee, Pledge, Agent shows your real accuracy, how long you take and where you lose marks.
More Meaning of Indemnity, Guarantee, Pledge, Agent questions
- Mehta, a trader in Surat, appoints Nair as his agent to sell goods. Mehta dies suddenly while some of the goods entrusted to Nair remain uns…
- Ramesh gives a continuing guarantee to a wholesaler for goods to be supplied to Sunil from time to time. Ramesh dies, and there is no contra…
- Kiran gives a guarantee to a lender for a loan to Sameer, on the express condition that the lender shall not act on it until Tarun has joine…
- Which of the following correctly distinguishes a contract of indemnity from a contract of guarantee as defined in the Indian Contract Act, 1…
- Rohit gives a guarantee to Bharat Traders for goods to be supplied on credit to Sameer. Bharat Traders delivers the goods, and the debt fall…
- Kiran, a solicitor, is authorised by his client Anil to sell Anil's estate by auction and to employ an auctioneer for it. Kiran names Chetan…