Define
pledge and write the right and duties of pawaner.
Pledge
is a kind of bailment where the transfer of goods or bailment of goods is made
as a security for the payment of debt, or performance of a promise. In such a case,
the person who gives goods as a security is called pledger or pawnor (bailor),
and the person who receives the goods as a security is called ‘pledgee’ or
‘pawnee’ (bailee). The pledge is bound
to return the pledged goods on the fulfillment of his debt or pledgor’s
promise. Thus the contract, by which the possession of goods is transferred as
security is known as a pledge.
For example,
X borrows Rs. 50000 from Y and keep his gold as a security for the payment of
that loan.
Essentialities
of the pledge:
i) Delivery of goods.
ii) Delivery for security.
iii) Lawful purpose.
iv) Return of goods.
v) The goods must be long-lasting.
Right
and Duties of a pawner
Rights:
i) A
pledgor has a right to enforce the following duties upon a pledge by a suit.
ii)
For reasonable care of goods.
iii)
For the redemption of goods.
iv)
To receive the goods with accretion.
v)
To stop selling the goods by depositing dues.
vi)
Right to get surplus after the sale of goods bailed by the pledge.
vii)
The right to return the goods after the full payment of dues.
Duties:
i)
To compensate for the extraordinary expenses incurred for the necessary care of
goods pledged.
ii)
To receive the goods after the full payment as per contract.
iii)
To pay the rest of the dues, if it is insufficient by the sale of the goods
pledged.
iv)
To dispose of the facts or defects and goodness of the goods pledged.
Reviewed by Bijay Munikar
on
September 29, 2020
Rating:
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