Discuss the main essentials of pledge
- Moveable Property :- The pledge is concerned with the moveable property. All types of goods and valuable documents are included in it.
- Transfer of Possession :- In case of pledge only possession of goods transferred by the pawnor to the pawnee. Example :- Mr. Nelson ledges car with Mr. ...
- Ownership Right :- In case of pledge, the ownership of the goods remains with the pawnor. It is not transfered to pawnee. Example :- Mr. ...
- Case of Mere Custody :- Those people who have only mere custody of the goods cannot pledge them. Example :- A custodian cannot pledge his masters banglow. ...
- Limited Interest :-
What are the essential characteristics of a pledge?
The essential characteristics of the pledge are given as under: Bailment of property for securing the payment of amount lent or performance of a promise. The asset is delivered to the pawnee by the pawnor as collateral, in pursuance of a contract and upon a condition to return on the realisation of debt or performance of the promise.
What is the meaning of pledge?
The bailment of goods as security for payment of a debt or performance of a promise is called 'Pledge'. Here bailor (The person delivering goods) is called the 'Pawnor ' or ' Pledger' and the Bailee (Person to whom goods are delivered) is called Pledgee or 'Pawnee'.
What is a pawn or a pledge?
Pledge is treated as special kind of bailment in which a movable thing is bailed as security for the repayment of a debt or for the performance of a promise. Pledge is also referred to as a pawn. The person who takes the loan is called the pledger or the pawnor.
What is the meaning of the word'pledge'?
Pledge also known as 'Pawn'. It is a Special Kind of Bailment. The bailment of goods as security for payment of a debt or performance of a promise is called 'Pledge'.
What is pledge and its types?
1. A promise. 2. A type of security interest in which a lender takes possession of personal property as security for an obligation. The personal property involved is also called a pledge.
What are the types of pledge?
Pledge TypesActive Pledge. Active pledge is defined as a pledge that is active, regardless if it has a payment schedule or not. ... Annual Fund Pledge. ... Conditional Pledge. ... Open Pledge. ... Pledge Intention. ... Straight Pledge. ... Will Commitment.
What are the rights of pledge?
The right of pledge is a right held by an obligee to obtain satisfaction of his credit out of the value of the personal property or property right of which he has received possession from the obligor or a third party as security for such credit in preference to other obligees.
What is the purpose of pledge?
A pledge is a bailment that conveys possessory title to property owned by a debtor (the pledgor) to a creditor (the pledgee) to secure repayment for some debt or obligation and to the mutual benefit of both parties. The term is also used to denote the property which constitutes the security.
What is an example of a pledge?
Pledge is defined as to give something as security for a loan, promise, make an agreement, or accept a potential membership. An example of pledge is to give someone your iPod as a guarantee that you'll return their car by a certain time. An example of pledge is to promise to return a person's car by a certain time.
What is pledge and rights and duties?
(Rights and duties of Pawner and Pawnee) 1. “Pledge” is defined under section 172 of Indian Contract Act. In simple words it refers to placement of a good or its title as a security either for repayment of a loan borrowed from the creditor or as for discharging an obligation made under a promise.
Who can create a pledge?
Pledge must have been made by the mercantile agent when acting in the ordinary course of business. The pawnee must act in good faith. Section 2(9) of Sale of Goods Act. Section 178 of the Indian Contract Act.
Who can pledge?
Any of the following persons may make a valid pledge: The owner, or his authorized agent, or. One of the several co-owners, who is in the sole possession of goods, with the consent of other owners, or. A mercantile agent, who is in possession of the goods with the consent of the real owner, or.
What is a general pledge?
General Pledge means a general pledge agreement (driftsl øsørepant) in the amount of USD 70,000,000 (including a declaration of pledge) entered into between the Borrower and the Agent (on behalf of the Finance Parties) whereby the Borrower pledges to the Agent (on behalf of the Finance Parties) on first priority all ...
How do you write a pledge example?
I, __________ (your name), promise to do my best to make mature and the right decisions, holding myself accountable to a high standard of integrity, hard work, and commitment to excellence.
What is your pledge?
A pledge is basically very serious formal promise. You can pledge allegiance to your country, you can pledge to keep a secret, and you can pledge a sum of money to a cause. Pledge can be used as both a noun and a verb. As a noun, it can be a solemn promise you've made.
What is English pledge?
English translation I shall give respect to my parents, teachers, and all the elders, and treat everyone with courtesy. To my country and my people. I pledge my devotion. In their well being and prosperity alone lies my happiness. Jai Hind.
What is required in a case of pledge?
In case of pledge there must be delivery of goods from the pledger to the pledgee
What is the purpose of a pledged goods?
The purpose of pledged goods is to act as security for repayment of debt or performance of the promise whereas the purpose of bailed goods is for safekeeping or repairs etc.
What is pledge in Indian law?
Pledge is a kind of contract in which the bailment of goods as security for the repayment of debt or loan advanced or performance of obligation or promise. The person who pledges the goods for security purpose is called pledger or pawnor and the person in whose favor the goods has been pledged is called pledgee or pownee. Pledge is also defined as pawn. The contract of pledge is defined under section 172 of Indian contract act 1892.
What are the rights of a pawn?
The rights to the pledger/pawnor is given under section 177 of Indian contract act which states that the pledger/pawnor has the right to redeem. This means that when the payment of debt or the performance of promise is done, the pawnor has the right to redeem the goods or property pledged from pawnee before making the actual sale by the pawnee. The right to redeem is extinguished once the actual sale of the goods or property is done by the pawnee as per the section 176 of Indian contract act.
What is the right of a pawnee in an Indian contract?
Section176 of Indian contract act states that on the failure to make repayment to Pawnee of the debt, the Pawnee has two right: either to initiate suit proceedings against him or sell the goods. In the former case, the Pawnee retains the goods with himself as collateral security and initiate the court proceedings. He need not provide any notice of such proceedings to the Pawnor. And in the latter case, the Pawnee can sell the goods after giving due notice of sale to the Pawnor. If the amount received from the sale of goods is less than the amount due, then the rest amount can be recovered from Pawnor. And if the Pawnee gets more amount than the due amount then such surplus is to be given back to Pawnor.
Which section of the Indian contract act says that the pawnee has the right to recover the extraordinary expense from?
The section 175 of Indian contract act says that the pawnee has the right to recover the extraordinary expense from the pawnor for the preservation of the goods pledged.
Who delivers the pledged goods?
The party who delivers the pledged goods is known as Pledger or Pawnor and the person receiving such goods is known as Pledgee or Pawnee. Whereas the person who delivers the bailed goods is known as Bailor and the person receiving such goods is known as Bailee.
What is a pledge?
Pledge also known as 'Pawn'. It is a Special Kind of Bailment. The bailment of goods as security for payment of a debt or performance of a promise is called 'Pledge'. Here bailor (The person delivering goods) is called the 'Pawnor ' or ' Pledger' and the Bailee ...
What are the conditions for a pledge?
To constitute Pledge, the following conditions are to be satisfied. (i) Delivery of possession. There must be a bailment of goods as defined in section 148 of the Contract Act that is delivery of goods. The delivery of possession may be actual or constructive.
What is a pawnee in Indian contract?
Section 172 of the Indian Contract Act, 1872 defines"Pledge", "pawnor", and "pawnee" as the bailment of goods as security for payment of a debt or performance of a promise is called “p ledge”. The bailor is in this case called “pawnor”. The bailee is called “pawnee”. Example :
What are the essential characteristics of a pledge?
The essential characteristics of the pledge are given as under: Bailment of property for securing the payment of amount lent or performance of a promise. The asset is delivered to the pawnee by the pawnor as collateral, in pursuance of a contract and upon a condition to return on the realisation of debt or performance of the promise. ...
What can be pledged?
Any movable item such as assets, documents, valuables, receipt of fixed deposit account or savings bank account and securities can be deposited with the moneylender or promisee, as collateral, against the repayment of loan or fulfilment of the obligation.
What is pledge in finance?
Definition: Pledge can be defined as that special form of bailment in which goods are bailed as security by one party to another, for the repayment of debt or performance of a promise. The party who deposits the goods is the bailor, called as pawnor, whereas the party who takes the possession of the goods or the one to whom ...
What is a right in connection to additional expenses borne?
Right in connection to additional expenses borne: Any expenses made by the pawnee for the safekeeping of the goods pledged are to be recovered from the pawnor.
What is subject matter in a pawn contract?
The subject matter of the contract is the asset or property given as collateral. The property pledged with the pawnor must be in existence. The ownership of the asset remains with the pawnor, accept in some circumstances, where the pawnee gets the right to sell the asset pledged.
What happens if the proceeds of a pawn sale are less than the amount lent?
Further, if the sale proceeds are less than the amount lent, the pawnor has to pay the remaining sum, but if the sale proceeds are higher than the money lent, then the pawnee should refund the surplus amount to the pawnor.
Who has the right to retain the pledged article?
Right to retain the goods: The pawnee has the right to retain the pledged article, not just for the repayment of the loan advanced or fulfilment of the obligation, but also for the interest accrued and all the relevant expenses incurred in connection to the possession and safekeeping of the article.
