What is Pledge?
Pledge means the Bailment of commodities as a protection for the imbursement of debt or performance of a promise. In this case the bailor is the ‘Pledger’ or ‘Pawned’. And the bailee is the ‘Pledge’ or the ‘Pawnee” Sec 172.
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. https://kitaghana.org/
Pledge is that special form of bailment in which goods are on bail as security by one party to another, for the repayment of debt or performance of a promise. `Pawn` is the contract between them
https://journal.magisz.org/Pledge by Non-owners: –
The general rule is that it is the owner who ordinary can create a valid pledge. But in the following even non-owner can make a valid pledge.
- By mercantile representative: – Where a mercantile mediator is in possession of commodities or the credentials of the title of the commodities. Now, any pledge made by him with the approval of the https://vuesdafrique.org/ proprietor is valid. This is because he is express by approved by the possessor of the commodities to make the sale. (Sec 178).
- Pledge by seller a buyer in possession after sale: – A seller left in possession of commodities after sale and a buyer who obtains possessions of commodities with the consent of the vendor before sale can make a valid pledge.
- By co-owner in possession: – One of the co-owners of commodities in possession may have a valid pledge of the commodities with the consent of other co-owners.
- By person in possession under a void able contract: – Where a person obtains possession of commodities under a void able contract, the pledge created by him is void.
RIGHTS OF PAWNEE: –
- Rights of retainer: – The Pawnee may retain the commodities pledged till his sum is paid. He may https://www.calthorpe.co.uk/heritage/ retain them not only for the clearance of the dues but for
- The interest due on the debt, and
- All necessary expresses incurred by him in respect of the preservation of the commodities pledged (Sec 173)
- Right of retainer for subsequent advances: – When the Pawnee borrows money to the same pawned after the time of the pledge, it is assumed that the right of retainer over the pledge of commodities extends to succeeding advance also (Sec174).
- Rights to extra ordinary express: – The Pawnee is to receive from the extraordinary express from the pawner extra ordinary expresses incurred by him for the preservation of the commodities pledged. For such expenses he has no right to retain the commodities. He can only sue to recover those. (Sec175).
- Right against true owner, when the pawner’s title is defective: – When the pawner obtained possession of the commodities pledged by him under avoidable contract (by fraud, undue influence, coercion). But the contract has not been rescinded at the time of the pledge. In this case the Pawnee acquires a good title to the commodities (Sec178-A)
- Pawnee’s right’s where pawner makes difficult: – Where the pawner fails to payment debt the Pawnee can exercise the following rights.
- He may file a suit against the pawner upon the debt a promise. Also he may retain the commodities pledged as security.
- Also he may sell the property pledged on giving the pawner reasonable notice of the sale.
- He can recover from the pawner any deficiency arising on the sell, of the commodities by him. But he shall have to handover the surplus realized on the sell, of the commodities pledged, to the Pawnee.
RIGHTS OF PAWNER: –
- Right to get back commodities: – The pawner has the right to get back the commodities on the repayment of the loan and interest.
- Rights to redeem the debt: – The pawner has a right to redeem the debt at any time for which the pledge is made (Sec177).
Preservation and maintenance of the commodities: – The Pawner has a right to sue that the Pawnee preserve the commodities pledged and property maintenance them or not.
- Right of an ordinary debtor: – The pawner has the right of ordinary debtor which are conformed on him by various status meant for his protection of debtors.