Business Law Assingment

1. ASSIGNMENT - 2ENT -
 NAME: M. Kalleswari
 CLASS: II. B.COM “B”
 ROLL NO.: 18UR60
 SUBJECT: Business Law
 SUBJECT CODE: K3C04
 SUBMITTED TO: Ms. R. Murugalakshmi M.Com., M.Phil., P.G.D.C.A.,

2. PLEDGE
 Definition:
 According to Section 172,
 The bailment o goods as security for
payment of a debt or performance o a
promise is called ‘pledge’. The bailor, in this
case, is called the ‘pawnor’ and the bailee is
called the ‘pawnee’.

3. Examaple:
 X borrows Rs.2,000 fromY and
keeps hiis gold ring as security for the
payment of the debt . X is the pawnor
andY is the pawnee.
 Any kind of movable property
can be pledged. The delivery off
goods may be actual or constructive.

4. Differents between Bailment
and Pledge:
Bailment Pledge
 Bailment of goods may be for
any purpose, e.g., for bailee’s
use, safe custody etc.
 The bailee can exercise the
right of len for recovering all
chares due from the bailor in
respect of the goods (as the
bailee), under certain
circumstances, has the right to
sell the goods found.
 If the terms of contract so
provide, the bailee can make use
of the oods delivered to him.
 Bailment of goods as
security for the pament o a
debt or performance of a
promisee is what is pledge.
 If the pownor makes
default in repaying the debt,
the pawnee ma, after giving
notice to the pawnor, sell the
goods pledged with him.
 The pawnee has no right to
use the goods pledged with
him.

5. RIGHTS OF THE PAWNEE
 In pledge, the rights of the pawnee are as follows:
 Right of Retainer (Section 173): The pawnee ma exercise
the right o particular lien in respect of the goods pleged
with him until he receives (a) the debt due, (b) the interest
due on the debt and (c) the necessar expenses incurred for
the preservation of the goods pledged.
 Right to retain to extend to subsequent advance (Section
174): In the absence of a contract to the country, the
presumption is that the right of retainer of the pawnee over
the pledged oods extends to subsequent advances also.
 Right to receive extraordinar expenses incurred (Section
175): the pawnee is entitled to receive from the pawnor
extraordinar expenses incurred by him for the preservation
of the goods pledged.

6.  Rights in case of defult b the pawnor (Section 176): If
the pawnor makes defult in payment of the debt, the
pawnee may file a suit against him. The pawnee ma also
exercise his right of pardicular lien. He may sell the
goods pledged with him ater giving due notice to the
pawnor. If, on any such sale, there is deficiency, he shall
have to hand it over to pawnor.
 Right to have vaild title where the pawnor’s title is
defective (Section 178-A): Where the pawnor has
obtained possession of the goods under a voidable
contract (induced b coercion, undue influence etc.) and
the contract has not been rescinded b the afffected part
at the time of pledge, the pawnee will get a ood title
provided he acts in good faith.

7. RIGHTS OF THE PAWNOR
 The pawnor’s rights in pledge are given below:
 To redeem the goods pledged in case of default (Section
177): If the pawnor makes defult in paying the debt within
the stipulated time, he may redeem (retrieve or get back)
the goods pledge at an subsequent time before the actual
sale of them. He must, however, have to pay, in addition,
any expenses which have arisen from the default.
 To receive back the goods: The pawnor is entitled to
receive back the goods pledged once he repas the dept, pas
the interest and other lawul charges of the pawmee.
 To require proper maintanance of the goods pledged:
The pawnor is entitled to require the pawnee to preserve
and maintain properl the goods pledged with him.

8. Thank you