Distinction between “pledge‟ from “mortgage”.

Pledge

  • This is a pawn
  • It is the delivery of goods a debtor to a creditor as a security for the amount borrowed or advanced to the debtor.
  • Its salient feature is delivery of possession.
  • The creditor acquires possession while the debtor retains ownership

 

Mortgage

  • Mortgage is the conveyance of land or assignment of a chattel as security for the payment of debt or the discharge of some other obligation for which it is given.
  • Mortgage involves the use of land as security for a loan.
  • There is conveyance of the land to the mortgagee.
  • The mortgagor’s right of redemption is a critical component of a mortgage.

Revision kits and past papers with answers

(Visited 1 times, 1 visits today)
Share this:

Written by 

Leave a Reply

Your email address will not be published. Required fields are marked *