Finder, Lien & Pledge — KSLU Contract 2 Notes

Finder, Lien & Pledge

A finder of goods is treated as a bailee (S.71): he must take reasonable care and try to find the owner, and he enjoys a right of lien for expenses (S.168) and, in limited cases, a right to sell (S.169). A lien is the right to retain goods until dues are paid: a particular lien (S.170) lets a bailee who has bestowed labour or skill (a tailor, a repairer) retain those particular goods for that charge; a general lien (S.171) — enjoyed by bankers, factors, wharfingers, attorneys and policy-brokers — allows retention of any goods for a general balance of account.

A pledge (pawn) (S.172) is the bailment of goods as security for a debt or promise; the bailor is the pawnor and the bailee the pawnee. The pawnee has the right to retain the goods (S.173), recover extraordinary expenses (S.175), and on default either sue on the debt and retain the goods as collateral or sell them after reasonable notice (S.176). Under the nemo dat rule a non-owner generally cannot pledge, but valid pledges arise from a mercantile agent in possession with consent (S.178), a person in possession under a voidable contract not yet rescinded (S.178A), and a seller/buyer in possession after sale.