What does the word “pleasure” mean? Explain its key components.
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What does the word “pleasure” mean? Explain its key components.
Pledge: Meaning and Essential Features
Meaning of Pledge:
Essential Features of Pledge:
Bailment of Goods: The pledgor must deliver possession of the goods to the pledgee. The pledgee holds the goods in trust until the debt is repaid.
Security for Debt: The primary purpose of the pledge is to provide security for the repayment of a debt or the performance of a promise. The pledgee has the right to sell the goods if the debt is not repaid.
Delivery of Possession: There must be actual or constructive delivery of the goods to the pledgee. This is essential to create a valid pledge.
Special Relationship: Pledge creates a special relationship between the pledgor and pledgee. The pledgee has a special property right in the goods, known as a special property.
Right of Sale: If the debt is not repaid, the pledgee has the right to sell the goods after giving due notice to the pledgor.
Right to Redemption: The pledgor has the right to redeem the goods by repaying the debt. Once the debt is repaid, the pledgee must return the goods to the pledgor.
No Transfer of Ownership: Pledge does not involve a transfer of ownership of the goods. The ownership remains with the pledgor, and the pledgee only has a right to hold and sell the goods in case of default.
Goods Must be Specific: The goods pledged must be specific and identifiable. Generic goods cannot be pledged.
Conclusion:
In conclusion, pledge is a transaction where goods are deposited as security for a debt or promise. It involves the delivery of goods to the pledgee, who holds them until the debt is repaid. Pledge creates a special relationship between the parties and gives the pledgee the right to sell the goods in case of default. Understanding the essential features of pledge is important for both pledgors and pledgees to ensure the transaction is legally valid and enforceable.