Module: General Practice
Q121: Identify the INCORRECT statement regarding "Assignment" as a mode of creating a charge:
✅ Correct Answer: D
Option D is Incorrect: Assignment deals with Intangible Assets (Actionable Claims) like rights to receive money (Life Insurance maturity, payments from government). Since these are not physical goods, "physical delivery of goods" is impossible.
Notice: Giving notice to the debtor (e.g., the Insurance Company or the Government Department) is crucial under Section 130 of the Transfer of Property Act to prevent them from paying the original creditor.
Pledge, in contrast, requires the physical or constructive delivery of goods.
Notice: Giving notice to the debtor (e.g., the Insurance Company or the Government Department) is crucial under Section 130 of the Transfer of Property Act to prevent them from paying the original creditor.
Pledge, in contrast, requires the physical or constructive delivery of goods.