JAIIB-LRAB-LAST MINUTE REVISION

Pledge	Mortgage
Pledge required only a limited interest in the property and ownership remains with the right of pledger.	Here the legal ownership passes to mortgagee. Of course subject to the mortgagor to redeem the property
The Pawnee has “special property” in the goods decree of pledged	The mortgage as a rule, takes decree of a Court of Law before having recourse against the property mortgaged.
Pawnee has no right to foreclosure	In certain cases, the mortgagee can foreclose the property.

• Pledge means bailment of goods for the purpose of securing a payment of debt or an obligation.
• A valid pledge can be created by owner of goods or a mercantile agent
• A constructive pledge involves only delivery of keys of the warehouse.
• Under the Contract of pledge the Pawnee can sell the goods pledged after notice or retain the goods and file a suit for recovery of debt.

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