Page 53 - 01. Indian Contract Act, 1872

Consent of all joint owners is required, if the goods owned joint to be sold or
pledged. Conditions for exception
(i) Goods are in the sole possession of one joint owners.

(ii) Goods came into his possession with consent of other join owners.
(iii) Pledge is made in good faith.

(f) Pledge by a seller in possession of goods after their sale. Conditions -
(1) Ownership of goods has been passed to the buyer

(2) Seller continues to be in their possession, even after their sale
(3) Seller pledges the goods to some other person

(g) Pledge is made in good faith without any notice of the prior sale.
Conditions

(1) Ownership has not been passed
(2) Buyer has obtained possession with the seller's consent

(3) Buyer pledges the goods to some other person
(4) Pledge is made in good faith.

Differences between bailment and pledge
Bailment Pledge
1 Goods are bailed for purpose Under it, goods are bailed as a security for
other than those referred under loan or performance of promise.
pledge.
2 Bailee generally cannot sell the Pawnee enjoys the right to sell the goods on
goods. pawnor's default.

Differences between Pledge & Lien ,

Pledge Lien
1 It gives a special property in the It gives a right to the creditor to retain a
things pledged property of the debtor.

2 It is always created by a contract. It is created by law.

3 Goods are bailed as a security for It is only the right of retainer, no bailment of
the payment of debt or performance goods as security is there.
of promise.
4 Pledge has a power to sell Lienholder has no right to sell.

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