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    Definition (S.172 Indian Contract Act)

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    welcome2jungle
    Pledge is defined as the bailment of goods as security for payment of a debt or performance of a promise. The pledger is the bailor who provides goods as collateral, while the pledgee is the bailee who holds the goods. The key differences between a pledge and regular bailment are the purpose of providing security, authorized use of goods only by the pledgee, and the pledgee's right of lien over the goods. The pledger has rights to redeem the debt and retrieve the goods, while being responsible for undisclosed faults. The pledgee has rights of retainer over the goods and against third parties, and duties to care for the goods and return them upon repayment of debt.

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    Definition (S.172 Indian Contract Act)

    Uploaded by

    welcome2jungle
    330 views3 pages
    Pledge is defined as the bailment of goods as security for payment of a debt or performance of a promise. The pledger is the bailor who provides goods as collateral, while the pledgee is the bailee who holds the goods. The key differences between a pledge and regular bailment are the purpose of providing security, authorized use of goods only by the pledgee, and the pledgee's right of lien over the goods. The pledger has rights to redeem the debt and retrieve the goods, while being responsible for undisclosed faults. The pledgee has rights of retainer over the goods and against third parties, and duties to care for the goods and return them upon repayment of debt.

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    Pledge

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    Pledge is defined as the bailment of goods as security for payment of a debt or performance of a promise. The pledger is the bailor who provides goods as collateral, while the pledgee is the bailee who holds the goods. The key differences between a pledge and regular bailment are the purpose of providing security, authorized use of goods only by the pledgee, and the pledgee's right of lien over the goods. The pledger has rights to redeem the debt and retrieve the goods, while being responsible for undisclosed faults. The pledgee has rights of retainer over the goods and against third parties, and duties to care for the goods and return them upon repayment of debt.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    330 views3 pages

    Definition (S.172 Indian Contract Act)

    Uploaded by

    welcome2jungle
    Pledge is defined as the bailment of goods as security for payment of a debt or performance of a promise. The pledger is the bailor who provides goods as collateral, while the pledgee is the bailee who holds the goods. The key differences between a pledge and regular bailment are the purpose of providing security, authorized use of goods only by the pledgee, and the pledgee's right of lien over the goods. The pledger has rights to redeem the debt and retrieve the goods, while being responsible for undisclosed faults. The pledgee has rights of retainer over the goods and against third parties, and duties to care for the goods and return them upon repayment of debt.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
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    Pledge

    Definition (S.172 Indian Contract Act):


    “ Bailment of goods as security for payment of a
    debt or performance of a promise is called
    pledge”

    Bailor is called pledger/pawner


    Bailee is called pledgee/pawnee

    Distinction between Pledge & Bailment:


    1. Purpose
    2. Use of goods
    3. Rights
    4. Lien
    Rights & Duties of Pledger
    Rights:
    1. To receive back
    2. To enforce preservation & proper maintenance
    3. To redeem the debt

    Duties:
    1. Must disclose any material fault or risks in goods
    2. Responsible to meet extraordinary expenses in
    preservation of goods pledged
    3. When pledgee exercises his right of sale, any shortfall
    has to be made good by pledger
    4. Liablle for loss caused due to defects in his title
    Rights & Duties of Pledgee
    Rights:
    1. Right to retainer (S.173)
    2. Right to retainer for subsequent advances
    3. Right to extraordinary expenses
    4. Right on default by pledger (sue/sell)
    5. Right against its owner, when pledger’s title is defective
    Duties:
    1. Required to take as much care as any person of ordinary
    prudence
    2. Must not put the goods to an unauthorized use
    3. Bound to return goods on payment of debt
    4. Any accruals to the goods should be delivered accordingly

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