What is General Lien?

Answer

General  Lien is a right of the creditor to retain in possession of the goods and securities till the dues are paid. In case of General Lien the creditor has no right to sell or liquidate the property without filing suit against the debtor.

 

What is Particular Lien?

Answer

Particular lien is a right of the creditor to retain the goods of the debtor in respect of a particular debt and this debt  must have arisen out of service rendered or money expended on the goods.

 

Who can create Pleadge?

Answer

Anyone who is in legal possession of the goods can pledge them. The parties who can make a valid pledge are:

a)     The owner of the goods himself.

b)     Mercantile agent (Section 178 of Contract Act 1872)

c)     A person, who has obtained possession of goods by fraud, mis-representation  coercion or undue influence, such person shall create a valid pledge provided the following conditions are fulfilled.

i)    The contract has not been rescinded before he enters into the contract of pledge.

ii) The pledge acts in good faith without knowledge of the defective title of the pledger. This principle does not apply to a thief who has no title to goods and can give none.

d)     Joint owner with the consent of other co-owner (s).

e)     A person who, with the consent of the seller, obtains possession of the goods or documents of title to the goods for which the title has not yet passed to that person provided the pledge acts in good faith and without notice of the pledger’s defect in the title therto.

f)    A seller who is in possession of the goods after selling them, can create a valid pledge provided the pledge must act in good faith and without notice of the previous sale.

g)     A pledge may repledge the goods for borrowing money to the extent of his interest in the said goods.

 

What is bailment and its characteristics?

Answer

Bailment  is the delivery of goods by one person to another for some purpose, under a contract that the goods shall, when the purpose is  accordingly , be returned or otherwise disposed of according to the directions of the person delivering them.

The essential characteristics of bailment are as follows:

i)      Bailment is always based upon a contract.

ii)     There can be a bailment of movable properties only, but money is not included in the category of movable goods.

iii)    Delivery of goods is essential for a contract of bailment. Delivery means transfer of possession, actual or constructive (symbolic), from one person to another.

iv)    In bailment, ownership is not transferred, but only special right of retaining the goods for the security is passed on to the lender until payment of debt.

v)      Goods are delivered upon a condition that  on accomplishment of the purpose the very goods in their original form are to be returned by the bailee or are otherwise to be disposed of according  to the directions of the bailor.

 

What are the types of Assignment?

Answer

a) Legal Assignment

b) Equitable Assignment