Right of Lien:

The right of lien means the right to retain the possession of goods until the full price is received.
An unpaid seller can exercise his right of lien in the following cases:
 When the goods are sold for cash and not on credit.
 When the goods are sold on credit but the term of credit has expired.
 When the buyer becomes insolvent, even if the period of credit has not been expired.

The others rules regarding lien ate as under:

1. It can be exercised when the goods are in possession of seller as agent or bailee of the
buyer,
2. It can be exercised even if the documents of title have been delivered to the buyer.
3. It can be exercised for price and not for other expenses.
4. If seller delivers some goods to the buyer, he can exercise his right of lien on the
remainder.
5. If the seller delivers the goods under the circumstances which show that he has agreed to
waive the lien, he cannot retain the remainder.
6. The seller can exercise a right of lien even though he has obtained a decree for price of
the goods.

The unpaid seller loses his right of lien in the following cases:
1. When he delivers the goods to a carrier or other bailee for transmission to the buyer.
2. When the buyer or his agent lawfully obtains possession of the goods.
3. When the seller waives his right of lien on goods.
4. The right of lien once lost will not restore even if the buyer delivers the goods to the
seller for any particular purpose.
5. When the buyer further sells the goods and the seller agrees.

EXAMPLE
E sold and delivered a refrigerator to J. It was not functioning properly so J delivered it back to E
for repairs, it was held that E could not exercise his lien over the refrigerator.

Right of Redemption

The right of redemption allows individuals who have defaulted on their mortgages the ability to
reclaim their property by paying the amount due (plus interest and penalties) before the
foreclosure process begins, or, in some states, even after a foreclosure sale (for the foreclosure
price, plus interest and penalties).
 Right of redemption is a legal process that allows a delinquent mortgage borrower to
reclaim their home or other property subject to foreclosure if they are able to repay their
obligations in time.
 In some states, this right can be exercised even if the lender has already re-sold the
property, as long as it is still within the redemption time frame and all conditions are met.
 A successful redemption will also typically require the borrower to repay any costs
incurred to the lender or other parties as a result of the foreclosure process.
Understanding Right of Redemption:
When an individual obtains a mortgage to buy a home, the home itself serves as the collateral for
the loan. That means that the home owner forfeits ownership of the home if they default on their
payments. Many mortgage notes include the right of foreclosure, which describes a lender's
ability to take possession of a property through a legal process called foreclosure and outlines the
conditions under which the lender has the right to foreclose. (State and national laws also
regulate the right of foreclosure.)

When homeowners default on their mortgage payments, lenders may invoke their right to
foreclosure. Lenders must abide by specific procedures in order for a foreclosure to be legal.
First, they must provide a default notice to the borrower, alerting them to the fact that their loan
is in default from missed payments. The homeowner then generally has a specified amount of
time to make good on any missed payments and avoid foreclosure. They will likely also be
required to pay late payment fees in addition to any outstanding balance. They may also use this
time to fight the foreclosure if they believe that the lender does not actually have the right to
foreclose on the property.

If a home eventually is foreclosed upon, the lender will generally sell the property in order to
recoup money lost on the loan. The right of redemption gives mortgagors the opportunity to
reclaim their property and stop a foreclosure sale from happening, or, in some cases, even
repurchase their property after a sale has occurred.

Right of Foreclosure

The right of foreclosure describes a lender's ability to take possession of a property through a
legal process called foreclosure when a homeowner defaults on mortgage payments. The
mortgage’s terms will outline the conditions under which the lender has the right to foreclose.
State and national laws also regulate the right of foreclosure.
 The right of foreclosure allows a lender to legally foreclose on a property that is in
arrears.
 Exercising the right of foreclosure legally requires giving notice to the borrower and
providing the borrower with time to make up missed payments.
 The right of redemption further limits the right of foreclosure by giving borrowers
additional opportunities to retain or recover their homes.

Understanding the Right of Foreclosure:

Foreclosure occurs because when a person obtains a mortgage to buy a home, the home itself
serves as the collateral for the loan. Since the property acts as collateral, the homeowner agrees
that they will forfeit ownership of it if they default on their payments. When a home is foreclosed
upon, the lender will generally sell the property to recoup money lost on the loan.
Foreclosure takes different amounts of time depending on the terms of the mortgage, the lender’s
motivation to foreclose, and local regulations. In many cases, it may take six months or more.

Once a home has been foreclosed, the lender will likely announce a foreclosure sale. These sales
often put the property up for auction to the highest bidder. If the homeowner still lives at the
home, they will likely face eviction through an unlawful detainer suit.

Pledge and Mortgage

Pledge:
A pledge is special kind of bailment. In a pledge, one person transfers the possession of goods to
another in order to secure the payment of dent or performance of a promise. The person who
delivers the goods is called a pledger. The person to whom the goods are delivered is called a
pledgee.

Example:
A borrows Rs. 1000 from B and gives his watch as security for payment of the debt. The
bailment of watch is called a pledge.

Essentials of pledge:
1. Moveable Goods
2. Limited Interest
3. Transfer of Possession

Mortgage:
The term Mortgage means the creation of security on the immoveable property of the buyer for
securing the repayment of a loan. The transfer of interest in the immoveable property for the
purpose of securing the loan is called mortgage. The transferor of interest is called the mortgagor
and the transferee is called the mortgagee.
 Mortgages are also known as "liens against property" or "claims on property."
 With a fixed-rate mortgage, the borrower pays the same interest rate for the life of the
loan.
 A burgeoning share of the lender market includes non-banks.

Example:
B borrowed Rs 10 Million from a bank. B Transferred the title deeds of his price of land to
secure the loan and interest. It is mortgage.

Difference Between Bailment and Pledge

 Bailment Pledge

Purpose In bailment, the goods are delivered In pledge, the goods are delivered as
for repairs and safe custody etc. a security for a loan or for the
performance of the promise.

Rights In bailment, the bailee has no such In pledge, the pledgee has a right of
right of sale. He can retain the goods sale of the pledged goods on default
or sue for the duties. after giving a notice to the pledger.

Use of In bailment, there is no such In pledge, the pledgee has no right of

Goods restriction if the nature of transaction using the goods pledged.
so requires.

Return of In bailment without reward the bailee In pledge the pledgee is not bound to
Goods is bound to return the goods on return the goods delivered unless the
demand by the bailor. debit is rapid or promise performed.

Lien In bailment, lien can exercised only In pledge, lien can be exercised even
for the labor can skill spent. for non-payment of interest.