Which of the following is correct
A. Pledge made by a mercantile agent is valid
B. Pledge made by a person in possession under voidable contract is valid
C. Pledge by a person having a limited interest is valid to the extent of that interest
D. All the above
Answer: Option D
Solution(By Examveda Team)
The correct answer is Option D: All the above.In the context of the Indian Contract Act, these options pertain to specific scenarios where pledges are considered valid:
- Option A: A pledge made by a mercantile agent is valid. A mercantile agent is a person who, in the ordinary course of business, has authority to pledge goods as security. Such pledges are recognized as valid under certain conditions.
- Option B: A pledge made by a person in possession under a voidable contract is valid. A voidable contract is one that is initially valid but can be voided by one of the parties due to factors like fraud or misrepresentation. Until the contract is voided, any pledge made by a person in possession is considered valid.
- Option C: A pledge by a person having a limited interest is valid to the extent of that interest. This means that if someone pledges property in which they have a limited or partial ownership interest, the pledge is valid only to the extent of that ownership interest.
So, Option D: All the above is correct because all three scenarios mentioned in Options A, B, and C can result in valid pledges under specific circumstances as defined by the Indian Contract Act.
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Comments ( 1 )
Indian Contract Act:- Gods displayed in showcase of a shop with price tag is -
A. Invitation to offer
B. Counteroffer
C. Communication
D. None of these
A. Is available to Y's representatives alone
B. Is available to Z alone
C. Is available to Y's representatives & Z both
D. Is available to Y's representatives & after the death of Z, his representatives
Moses v. Macferlan (1555-1774) is a case relating to
A. Theory of unjust enrichment
B. The right of lien
C. Test of agency
D. Doctrine of frustration
A. The active concealment of a fact by one having knowledge or belief of the fact
B. A promise made without any intention of performing it
C. The suggestion, as a fact, of that which is true, by one who does believe it to be true
D. None above
Correct answer should be D. See section 178A