BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The bailor is in this case called the ‘pawnor’. The bailee is called ‘pawnee’.-The bailment of goods as security for payment of a debt or performance of a promise is called ‘pledge’. The bailor is in this case called the ‘pawnor’.

Detailed explanation-2: -Pledge, Pawnor, and Pawnee A promise called pawn has been characterised as the bailment of products as security for the instalment of an obligation or execution of a guarantee. The bailor is known as the pledger or pawnor, and the bailee is known as the pledgee.

Detailed explanation-3: -Duties of Pawnor The pawnor is liable to pay the debt or perform the promise as the case may be. b. It is the duty of the pawnor to compensate the Pawnee for any extraordinary expenses incurred by him for preserving the goods pawned.

Detailed explanation-4: -Pawnee has a right to seek reimbursement of extraordinary expenses incurred. However, he cannot retain goods with him in such a case. Pawnee has a right to sell the goods after giving reasonable notice and time to pawnor. Pawnee can sue pawnor for deficiency, if any, after the sale of such goods.

Detailed explanation-5: -The pawnor has a duty to pay the amount back to the Pawnee and the Pawnee has a duty to return the goods after pawnor pays the amount. The Pawnee should not makes unauthorized use of the goods bailed to him if he does, he will be liable to pay compensation to the pawnor.