Explain Lien under Contract Act 1872 with Example

In conclusion, I would like to say that it is very important to understand what a privilege is and what it makes sense, as well as the variety of types of privileges. This study helps to understand various other concepts under special contract law such as pledge, the concept of bailee, the sale of goods, the search for goods, the concept of agent and sub-agent, property privileges, taxes and loans, and the sea. It can therefore be said that a lien is a lender`s claim on a collateral element that can be legally sold if the borrower does not repay the loan. This is important because it protects lenders in the event of default, and also because loans come with collateral that has become less risky for buyers these days because they can borrow at lower interest rates. We can give an example, as when we buy a car, it is important to check the privileges against the vehicle. Because if there is an unpaid debt on the car, the buyer runs the risk that it will be taken back into possession by the lender or service provider. So we can say that knowledge of privileges and its nature is very important and makes itself more aware and informed as a customer. Privilege is related to the possession of property, that is, if there is no possession of property, there is no privilege. Therefore, possession is the essence of privilege.

Many think that the two types of privilege are one and the same thing, but there are slight and subtle differences between general privilege and special privilege. General privilege is defined in section 171 of the Indian Contract Act 1872. General privilege refers to a person`s right to retain possession of another person`s movable property as security against a general account balance until the debts are settled by the owner. Lien means the seller`s right to retain the buyer`s designated goods until the buyer has paid the debt of the goods sold to it. The rights of the unpaid seller are explained in ยงยง 46, 47 and 49 of this Special Act. [64] Maxine Sweet, Quotehd.com, www.google.com/search?q=quotes+on+lien&rlz=1C1CHBF_enIN808IN808&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiHz6CT7InhAhVtQt8KHe_XAVcQ_AUIDigB&biw=1280&bih=578#imgrc=yu1p1pUW9ELDbM: Subject to her privilege, a lawyer exempted by his clients holds the papers entrusted to him. But on the other hand, if the lawyer rejects himself, he is not entitled to a privilege under English law, and the same was applied to Indian law in the case of Atool Chandra Mukerjee v. Shashee Bhusan.

[55] In Currie v. Misa,[11] the House of Lords stated: “If the holder of a law has a privilege over it, whether by contract or by operation of law, he shall be deemed to be the holder of a value up to the amount over which he has a privilege. A banker has a lien on all assets and valuables of his clients that come into his possession as a banker in the ordinary course of business. [75] norrismclaughlin.com/clb/2017/06/21/contractors-working-new-york-new-jersey-need-written-contract-file-mechanics-construction-lien/ In the landmark mercantile Bank of India v. Rochaldas Gidumal[7], “a client gave his banker a sum of money to send by wire transfer to his company elsewhere. The money must be held by the bank for the balance of its account against the company. In the present case, the English authorities concluded that the term “goods” was not defined in the Indian Contracts Act. The Sale of Goods Act excludes money from the definition of “property” The Sale of Property Act excludes money from the definition of “property”. In addition, the money provided for telegraph transmission is used for a specific reason incompatible with the exercise of the privilege.

Therefore, it would be unfair to expect a referrer who urgently needs money at the time of payment to agree to send money through the banker if he or she is informed or has reason to believe that the money would be withheld in the exercise of that alleged privilege. [72] www.asm-law.com/importance-lien-claim-waiver/ “Privilege is, in its primary sense, the right of one person to keep what is in his possession to another until certain requirements of the person in possession are met. In this primary sense, it is required by law and not contractually. A judgment privilege is a privilege placed by the courts on assets, which is usually due to a lawsuit. A trial lien could help a defendant be reimbursed in the event of non-payment by liquidating the defendant`s assets. Privilege is the right to retain ownership of someone else`s property until the other person responds to the claims of the person in possession. The claim may be arbitrary – to fulfill an obligation or to pay a sum of money due. In the event that the Customer or the Buyer does not pay the amount to the Agent or a sailor, the Agent may claim the amount by selling the guarantee and this right arose due to the privilege. Under the general privilege, a person may retain possession of property belonging to another party until the debt owed by that person is settled.

In the case of a special lien, a person may retain possession of certain goods only until the liability for those goods is settled. The Indian Contract Act of 1872 stipulated that the right to a special privilege was available to the bailee under certain conditions. The most important condition in other conditions is the exercise of skills or work related to the rescued goods. In addition, it has been very often stressed that the skills or work done by the baileee must be such that the mayor will improve the quality of the goods. In Miles v. Gorton, it was found that in a contract in which there are no specifications on payment or delivery of the goods, the seller may retain the buyer`s goods until the buyer pays the price of the goods. In the meantime, the risk of these goods is borne by the seller in his possession. General privilege was originally established in England and became part of the merchant of right to be perceived as any other part of the law. This was affirmed in Brandao v. Barnett. [34] There are also several legal privileges, i.e. privileges created by law, as opposed to those created by a contract.

These privileges are very common in the field of taxation, where laws often allow tax authorities to create privileges on the assets of defaulting taxpayers. For example, municipalities can use privileges to recover unpaid property taxes. Like other primitive remedies, the usual means of a privilege is a means of self-help and does not need to be brought by the courts, since it can only be exercised by a craftsman who contains the actual possession of the property that is the subject of the privilege. In a privilege to obtain the right of ownership takes place immediately. The research carried out would make it possible to analyse the meaning of privilege and its nature by understanding the various provisions and judgments adopted by several statutes and regulations. The document would first define what privilege is and how it is defined under the Special Contracts Act. In addition, the document would understand the different types of privileges and how they evolved with the help of cases decided in India, and the document would thus deal more with the understanding and interpretation of the scope of privileges and how its applicability can be understood. The researcher would then explain how various important pieces of legislation have explained and interpreted privileges, and suggestions can be incorporated to improve the various distinctions of privilege. Finally, the researcher would statistically analyze the data collected to get a brief overview of privilege and its nature, which would indeed help us describe the various facts and questions that come to mind when we think of privilege and its gender.

A lien is a legal document signed by a general contractor, subcontractor, supplier or equipment before or against payment. The privilege applies to almost every matter of common interest, from the repayment of loans to the property to cases of medical injuries, to the repayment of a tailor or diamond dealer, etc. A tax lien also affects the taxpayer`s ability to sell existing assets and obtain loans. The only way to release a federal tax privilege is to pay the tax due in full or enter into an agreement with the IRS. The IRS has the power to seize the assets of a taxpayer who is unaware of a tax lien. Typically, the IRS uses privileges for overdue taxes as a last resort after all other options, such as collection, installment repayment plans, and billing, are exhausted. “If a bailee has devoted his work and skills to the improvement of movable property provided to him, he has a privilege on his fees in this regard. Thus, the artifier to whom the goods are delivered to be shaped, or the farrier, by whose skill the animal is cured of a disease, or the horse breaker, by whose skill it is made controllable, have privileges over movable property in relation to their charges. “This is a very serious negative point in your report, comparable to a tax lien or bankruptcy. You`ll definitely pay more for your loan, with higher interest rates and higher down payments. [1] [3] Academia, P 1, General Introduction, March 17, 2019, www.academia.edu/19762763/Bankers_right_to_lien_customers_deposit_its_legal_implication_challenges_and_applicability Due to explicit laws in most states, mechanics and material men or persons who provide materials for the construction of houses or other buildings are entitled to a privilege or preference to pay the debts of houses so built.

and the buildings and land, to a greater or lesser extent, on which they are erected. .