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Subject Name: Business Law Department of Management Created By: Ms. Anubhuti Saxena

The document discusses the Indian Contract Act of 1872 and focuses on the topics of pledges, bailments, and liens. It defines a pledge as the bailment of goods as security for payment of a debt or performance of a promise. The key differences between a pledge and bailment are that a pledgee has the right to sell pledged goods upon default, while a bailee cannot sell bailed goods. It also explains the types of liens as particular liens, which apply to specific goods, and general liens, which apply to any goods.

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27 views8 pages

Subject Name: Business Law Department of Management Created By: Ms. Anubhuti Saxena

The document discusses the Indian Contract Act of 1872 and focuses on the topics of pledges, bailments, and liens. It defines a pledge as the bailment of goods as security for payment of a debt or performance of a promise. The key differences between a pledge and bailment are that a pledgee has the right to sell pledged goods upon default, while a bailee cannot sell bailed goods. It also explains the types of liens as particular liens, which apply to specific goods, and general liens, which apply to any goods.

Uploaded by

njhuyfytrdt
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Subject Name : Business Law

Department of Management
Created By: Ms. Anubhuti Saxena

JIMS Engineering Management Technical Campus (JEMTEC)


48/4, Knowledge Park III, Greater Noida
Subject: BUSINESS LAW
Topic: INDIAN CONTRACT ACT, 1872
▰

SPECIAL CONTRACTS
PLEDGE
Pledge
▰ Sec.172 of Contract Act defines pledge or, pawn as-
The bailment of goods as security for payment of a
debt or, performance of a promise is called a Pledge

▰ The bailor here is called the Pledger or, Pawnor

▰ The bailee is called the Pawnee or ,Pledgee


Pledge and Bailment

Similarities:

1. Both are created by contract between the parties

2.Both involve transfer of Possession

3.Only movable property can be the subject matter

4.The same goods are to be returned after the fulfillment of the purpose of the

contract

 
Differences

▰ 1.Purpose: Bailment may be for any kind of purpose, for eg.-


repair, reward, safe-custody etc While, pledge is made for a
specific purpose of providing security against loan
▰ 2.Right to use the goods: In bailment, a bailee may have the
right to use the goods if the terms of the bailment so provide.
However, in pledge, a pledgee does not have any right to use the
goods
▰ 3.Right to sell the goods: In pledge, pledgee has the right to sell
the goods in case of any default by giving a prior notice of sale
to the pledger but, in bailment he can retain the goods or , can
file a suit against the bailor BUT CANNOT SELL
Lien
Lien means the right of a person having possession of goods belonging
to another to retain those goods until satisfaction of sum claimed by the
person in possession of the goods
Characteristics of Lien-
Right of lien arises from law not from contract
Possession is essential for exercising lien
Right of lien is a right to possess something ,not to sell it
Lien terminates when the bailee’s demands are met

Types of lien-
Particular lien
General lien
▰ Particular lien gives right to retain only such goods in
respect of which charges due remain unpaid. It can
be exercised by finder of
goods,bailees,pawnees,agents

▰ whereas, general lien gives right to retain any goods


belonging to another person for any amount due from
him. General lien is a privilege and it is available to
certain people only as per law-BANKERS,ATTORNIES OF
HIGH COURT,INSURANCE BROKERS, OTHERS WHO
GIVE SUCH RIGHTS BY A WRITTEN CONTRACT

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