This Ppt gives you complete details of the Pledge in the law.

1. LEGAL ASPECTS
OF BUSINESS
PLEDGE
(SEC 172)
-ABHILASH KONIJETI

2. CONTENTS
• MEANING & INTRODUCTION
• ESSENTIALS OF CONTRACT OF PLEDGE
• RIGHTS OF PAWNER
• DUTIES OF PAWNER
• RIGHTS OF PAWNEE
• DUTIES OF PAWNEE
• DISTINCTION BETWEEN BAILMENT AND
PLEDGE
• PLEDGE THROUGH NON-OWNERS

3. PLEDGE
Meaning and Introduction
A pledge is only a special kind of bailment, and chief basis of
distinction is the object of the contract. Where the object of the
delivery of goods is to provide a security for a loan or for the
fulfilment of an obligation, that kind of bailment is pledge.
Under Indian Contract Act, 1872 the ‘Pledge’ has been defined in
section 172 as:
Section 172. “Pledge”, “pawnor”, and “Pawnee” defined.-
The bailment of goods as security for payment of a debt or
performance of a promise is called “pledge”. The bailor is in this
case called the “Pawnor”. The Bailee is called the “Pawnee”.

4. ESSENTIALS OF CONTRACT OF PLEDGE
1. CONTRACT
2. MOVEABLE PROPERTY
3. CHANGE OF POSSESSION
4. GOODS IN THE POSSESSION OF PAWNEE
5. PURPOSE OF DELIVERY
6. NUMBER OF PARTIES
7. RIGHT OF OWNERSHIP
8. CHANGE OF FIRM
9. REDELIVERY OF GOODS
10. RIGHT OF SALE

5. RIGHTS OF PAWNER
1. RIGHT TO GET BACK THE GOODS ( SEC 177)
2. EXPENSES OF SEPERATION
3. COMPENSATION FOR CHANGE OF FORM
4. RIGHT TO REDEEM GOODS
5. RIGHT TO GET PROFIT
6. REDEMPTION OF DEBT

6. DUTIES OF PAWNER
1.DUTY TO PAY DEBT
2.DUTY TO COMPENSATE ( SEC 175)
3.DUTY TO PLEDGE GOODS

7. RIGHTS TO PAWNEE
1.RIGHT TO RETAIN GOODS (SEC 173-174)
2.RECOVERY OF EXPENSES ( SEC 175)
3.RIGHT TO SELL THE GOODS ( SEC 176)
4.GOOD TITLE

8. DUTIES OF PAWNEE
1. CARE OF GOODS
2. NO UNAUTHORISED USE
3. NO CHANGE OF FORM
4. NO MIXTURE
5. NO INCONSISTENT ACT
6. RETURN OF PROFIT
7. RETURN OF GOODS

9. DISTINCTION BETWEEN BAILMENT AND
PLEDGE
1. BY MEANING
2. NATURE OF PARTIES
3. RIGHT TO SELL GOODS
4. RETURN OF GOODS
5. CHANGE OF FORM
6. RIGHT OF REWARD
7. MAJOR INTEREST
8. CONCEPT OF INTEREST
9. USE OF GOODS

10. PLEDGE BY NON-OWNERS
1. PLEDGE BY MERCANTILE AGENT ( SEC. 178).
2. PLEDGE BY PERSON IN POSSESSION UNDER VOIDABLE CONTRACT ( SEC 178 A )
3. PLEDGE WHERE PAWNOR HAS ONLY A LIMITED INTEREST ( SEC 179 )
4. PLEDGE BY CO-OWNER IN POSSESSION
5. PLEDGE BY SELLER OR BUYER IN POSSESSION AFTER SALE

11. THANK YOU