rights and duties of the Pawnor and Pawnee under the contract of pawn (pledge)

by • 09/06/2013 • GeneralComments (0)1935

 

Q. 10   What are the rights and duties of the Pawnor and Pawnee under the contract of pawn (pledge)? 

Ans:    RIGHTS OF PAWNOR

Following are rights of Pawnoi

1.         RIGHT TO GET BACK THE GOODS

The Pawnor has a right to get back the goods from the Pawnee as soon as the payment of the debt is made or the promise is performed.

2.         EXPENSES OF SEPARATION

If the Pawnee has mixed the goods of the pawnor with some one other goods not belonging to pawnor without the consent of the pawnor, the pawnor has a right to recover the expenses of separation and cost of damage if any from the Pawnee,

3.         COMPENSATION FOR CHANGE OP POEM

If the Pawnee has changed the form of the goods given as security, the pawnor has right to claim the damage.

4.         RIGHT TO REDEEM GOODS

If the Pawnee has made sale of goods without giving reasonable notice to the pawnor, the pawnor has a right to sue for the redemption of goods, treating the sale as void after depositing dues with the court.

5.         RIGHT TO GET PROFIT (Section 177)

If the pawnee has earned profit by using pawnor’s goods which has not allowed to him with condition of the contract, the pawnor has a right to get back the goods along with profit earned by pawnee by paying the debt in full on due date.

6.         REDEEMPTION OF DEBT

A pawnor who makes default in payment of debt at the stipulated date has right to redeem the debt at any subsequent time before the actual sale of the goods pledge after paying additional expenses which has arisen from his default.

 

 

DUTIES OF THE PAWNOR

Following are duties of pawnor.

1.         DUTY TO PA Y DEBT

It is duty of the pawnor to pay the amount of debt or perform the contract within stipulated time according to the terms of the contract,

2.         DUTY TO COMPENSATE

It is the duty of the pawnor to compensate the Pawnee for an extraordinary expenses incurred by him for the preservation of the goods pledge’(Sec. 175).

3.         DUTY TO PLEDGE

It is the duty of the pawnor to pledge only those goods for which he has good title. If the pawnor title’s is defective and this fact is not in the knowledge of the Pawnee, the Pawnee has good title.

The rights of the Pawnee under the contract of pledge are started below.

 

RIGHT OF PAWNEE

The rights of the Pawnee under the contract of pledge are started below:

1.         RIGHT TO RETAIN GOODS (Section 173)

The Pawnee may retain the goods pledge, not only for payment of debt or for the performance of the promise,, but for the interest of the debt, and necessary expenses incurred by him in respect of the possession or for the preservation of the goods pledged. (Sec. 173)

2.         RECOVERY OF EXPENSES (Section 175)

The Pawnee is entitled to receive from the pawnor extra ordinary expenses incurred by him for the preservation of the goods pledge. (Sec 175)

3.         RIGHT TO SELL THE GOODS (Section 176)

If the pawnor fail to perform the contract or to make payment of the debt, the pawnee has not only the right to retain the goods but can also be sell it after giving reasonable notice to the pawnor.

4          GOODS TITLE (Section 178 A)

If the pawnor’s title is defective under void able contract, the pawnor has good title provided that he has no notice of such defect in pawnor’s title;

 

DUTIES OF THE PAWNEE

The duties of the Pawnee under the contract of pawn (pledge) are as under.

1.         CARE OF GOODS

It is the duty of the Pawnee to take reasonable care of goods pledge with him.

2.         NO unauthorized USE

It is the duty of the Pawnee to make any such use of the goods pledge with him, which has not been authorized to him according to the terms of the contract.’

3.         NO CHANCE OF FORM

The Pawnee cannot change the form of the goods pledge with him. If he so, the pawnor can claim for damage.

4.         NO MIXTURE

The Pawnee cannot mix the goods of the pawnor with his own goods or with some one other goods not belong to pawnor to do so, the Pawnee can get the compensation for separation of his goods from other goods.

5.         NO INCONSISTENT A CT

The Pawnee cannot take any act with the goods pledge with him, which is inconsistent with the terms of the contract. If he does so, the pawnor can claim for damages.

6.         RETURN OF PROFIT

If the Pawnee has earned any profit from the use of the goods pledge with him, whom he cannot use according to the terms of the contract, he must return such profit to the pawnor.

7.         RETURN OF GOODS

The Pawnee must return goods pledge with him to the pawnor as soon as the debt is paid in full or pawnor performs promise.

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