Pledge is a type of bailment where goods are delivered as security for a debt or obligation. In a pledge, the pledger (pawnor) delivers movable goods like jewelry or documents to the pledgee (pawnee) as collateral for a loan. If the debt is not repaid, the pledgee can sell the goods after providing notice to the pledger. Key requirements for a valid pledge are that the pledger must be the lawful owner of the movable goods provided as collateral, and the goods must be transferred from the pledger to the pledgee. Upon fulfillment of the obligation, the pledgee must return the goods to the pledger and the contract is terminated.

1. PLEDGE
COMMERCIAL LAW
[B.COM HONS.]

2. ► MEANING
►DEFINATION
►ESSENTIALS FOR A VALID PLEDGE

3. A pledge is only a special kind of bailment, and chief basis of
distinction is the object of a contract.where the object of the
delivery of the goods is provide a seceurity for a loan or for the
fulfillment of an oblihation,thatkind of bailment is pledge.
pledge is governed by the principle of bailment.

4. As wqper section 172 of indian contract act, 1872, “the bailment of
goods as a security for the payment of debt or performance of a
promise is called ‘
The bailor in this case is called ‘ ’
And the bailee is called
If X delivers the bank ornament (gold) for obtaining loan, it called pledge.
Here in this example the X is pledger or pawnor and the bank is
pledge.or pawnee.

5. BASIS PLEDGE BAILMENT
PURPOSE
REMEDY ON
DEFAULT
AS security for performance
of a specific promise,like
repayment of debtor
For any purpose.
after giving notice to
pawnor,pawnee may sell the
goods pledged.
USE OWN
PURPOSE
PAWNEE HAS NO RIGHTS TO
USE THE GOODSPLEDGED
WITH HIM.
Bailee may either
retain the goods or
sure for his
charges.
bailee may use the
goods bailed for
own.
PLEDGE VS BAILMENT

6. Moveable goods are any moveable item, like valuables jwallery,shares of a companies,documents
or goverment securites. immovable property is beyond the scope of a pledge.
only a person who is the lawful owner of a meoveable property can pledge such property.
mere possession of goods does not give the possessor a right to pledge such goods.
In a contract of pledge,the goods pledged must be transferred from the pawnor(pledger).
to the pawnee(pledgee).
when the object of the pledge is accomplished,or after stipulated time , the pawnee return the
goods in his possession to the pawnor and the contract is terminated.

7. pledge by person who is having a limited interest in thge property.
pledge by a seller in possession after sale.
pledge by a buyer in possession after sale.
pledge by a person in possession under a voidable contract.