What is pledge explain?

noun. a solemn promise or agreement to do or refrain from doing something: a pledge of aid; a pledge not to wage war. something delivered as security for the payment of a debt or fulfillment of a promise, and subject to forfeiture on failure to pay or fulfill the promise.

What is the meaning of pledge in contract?

Pledge: Meaning, Definition And Nature -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 pawnee.

Who is a Pawnor?

“Pawnor”- The bailor in case of a pledge is called as pawnor or pledger. It means the person who delivers the goods as security for payment of a debt or performance of a promise is called the pawnor.

How is a pledge created?

To create a pledge, the pledgee must be in control of the pledged asset in a way which means the debtor can no longer interfere with the asset. The pledgee must have possession, which can be actual or constructive.

What are the types of pledge?

Types of Pledge / Hypothecation Transactions

• Pledge / Hypothecation Creation.
• Pledge / Hypothecation Closure.
• Pledge / Hypothecation Invocation.

What is pledge in business law?

A pledge is a bailment that conveys possessory title to property owned by a debtor (the pledgor) to a creditor (the pledgee) to secure repayment for some debt or obligation and to the mutual benefit of both parties. The term is also used to denote the property which constitutes the security.

What is pledge and agency?

Rights of a Pawnee The rights of the Pawnee as per Indian Contract Act, 1872 are: Right to retain the goods: If the Pawnor fails to make the payment of a debt or does not perform as per the promise made, the Pawnee has the right to retain the goods pledged as security.

What is Pawnor and Pawnee?

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 “pawnee”.

What is a pawn pledge?

To deliver PERSONAL PROPERTY to another as a pledge or as security for a debt. A deposit of goods with a creditor as security for a sum of money borrowed. In common usage, pawn signifies a pledge of goods, as distinguished from a pledge of intangible personal property, such as a contract right.