Page 52 - 01. Indian Contract Act, 1872

(c) Take reasonable care of the goods

(d) Not to mix the goods with his own goods
(e) Return any increase in goods pledged with him
(f) Return any surplus on sale.

 Rights of Pawnee

Sec. 173: Retain the goods pledged only for
(a) the performance of promise, (b) payment of debt, or (c) interest on debt.
Sec. 174: Right of particular lien.

Sec. 175: Seek reimbursement of extra ordinary expenses.

Sec. 176: Right to sue the pawner in the event of pawner failing to redeem
the debt or perform the promise. He can sell the goods aftergiving a notice of
sale.

 Pledge by non- owners
A valid pledge can be created by following non- owners:

(a) Pledge by Estoppel.

(b) Pledge by a mercantile agent. (Sec. 178)
Mercantile Agent means an agent of the seller who has been appointed to
sell the goods belonging to the seller.
Conditions for pledging:

(i) Goods came into his possession with the consent of selling owner of
goods.
(ii) Pledge is made by him in the ordinary course of business

(iii) Pawnee acts in good faith.
(c) Pledge by a person in possession under a voidable contract. (Sec.178 A)

Conditions -

(1) Person acquires goods under voidable contract
(2) Person who acquires the goods pledges such goods

(3) At the time of creation of pledge, voidable contract should have rescinded
(4) Pledge is made in good faith.

(d) Sec. 179: Pledge by a person having limited interest in the good if a person
has a limited interest, he can make a valid pledge to the extent of that interest.

(e) Pledge by a co-owner in possession:

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