A Pledge is a specific category of bailment where goods are delivered as security for the payment of a debt or performance of a promise (Section 172).
Pawnor (or Pledger): The person who delivers the goods as security.
Pawnee (or Pledgee): The person (usually a creditor) with whom the goods are deposited.
Essentials of a Pledge:
Delivery of Possession: Physical or constructive delivery of the goods must happen.
Purpose: The goods must be held as security for a debt/promise.
Return of Goods: Once the debt is paid, the goods must be returned to the Pawnor.
Right of Sale: If the Pawnor defaults, the Pawnee has the legal right to sell the goods after giving reasonable notice.
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