Contract of Pledge or Pawn | Essentials & Definition

Contract of Pledge or Pawn

The bailment of goods as security for payment of a debt or performance of a promise is called pledge. The bailor in this case is called the pledger or pawnor. The bailee is called the pledgee or pawnee.

Essentials of pledge

• Moveable property
• Limited interest
• Transfer of possession
• No transfer of ownership
• Not mere custody