Bailment, Pledge, Charge and Mortgage | Meaning | Contract & Transfer Property Act | The National TV
- by Aditi-Harshraj
- May 07, 2020 15:05
Bailment, Pledge, Charge, Mortgage are the common terms used in Contract and Transfer of Property Act. These terms seem to be similar and are different from each other.
Bailment Sec 148 of Indian Contract Act,1872, states that, In bailment, the possession or ownership of the goods has been transferred to another person for some purpose and when the purpose is accomplished then the person is required to return the goods to the owner. The person who delivers the goods is bailer while the person to whom goods are delivered is the bailee.
Pledge Sec 172 of Indian Contract Act,1872, defines, If a person takes possession of the good and in return, he gives his moveable property as security for payment of a debt or performance of a promise then it is a pledge. Here the person giving his movable property is Pawnee and whom it is given is Pawner.
Mortgage Sec 58(a) of Transfer of Property Act, 1882 states that Mortgage is the transfer of ownership interest for the purpose of securing the payment of money in the advance loan, an existing or future debt, or as a security for performance of a promise. Immovable properties are usually taken into consideration but car loans, gold loans are exceptional.
Charge creates hindrance on the title of property as the lender or the person who got the charge of the moveable property doesn't have the right to sell the property. In mortgage and charge, another person has the property but the difference is a mortgage is on the immovable property while the charge is on moveable property. In a mortgage, the person has the right to sell the property but in charge, he has no right to sell.
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