are delivered to another as a pawn, to be a security for money borrowed of him by the bailor, and this is called in Latin vadium, and in English, a pawn or pledge” (a). "If a Pawnbroker receives plate or jewels, as a pledge or security for the repayment of money lent thereon at a day certain, he has them upon an express contract or condition to restore them, if the pledgor performs his part by redeeming them in due time (b), or even if he is willing to redeem them while they still remain in the hands of the Pawnbroker unsold" (c). "The contract of pledge is a bailment or delivery of goods and chattels by one man to another, to be holden as a security for the payment of a debt or the performance of some engagement, and upon the express or implied understanding that the thing deposited is to be restored to the owner as soon as the debt is discharged, or the engagement has been fulfilled" (d). "In the ordinary case of a pledge, the pledgee impliedly [or expressly] undertakes to deliver back the property to the pledgor, when the sum for which it is pledged is paid" (e). "A pledge or pawn is a security under which, by virtue of an actual or constructive delivery and possession of a personal chattel, or of prior possession supported by contract, a special property only is vested in the pawnee, as a security for a debt or engagement" (f). "A pawn is a bailment of personal property, as security for some debt or engagement" (g). (a) Per Holt, C. J., in Coggs v. Bernard, 1 Ld. Raym., 909, 1 S. L. C. 7th edit. 188. (b) 2 Blackstone's Com. 452. (c) 2 Stephen's Blackstone, 4th edit., 5 B. & A. 439, 79, citing Walter v. Smith, 5 B. & Ald., 439. (d) Addison On Contracts, 5th edit. 298. (e) Lord Wensleydale, in Cheesman v. Exall, 6 Ex. 341, 344. (f) Fisher On Mortgage, 3rd edit., par. 7. (9) Story On Bailments, sec. 286 "A pledge is a contract by which a debtor gives something to his creditor, as a security for his debt" (a). "On peut définir le contrat de nantissement comme un contrat par lequel un débiteur ou un autre pour lui, donne au créancier une chose pour la detenir par devers lui pour la sûreté de sa créance, et le créancier s'oblige de la lui rendre après que sa créance aura été acquittée." "La chose qui est donnée par ce contrat au créancier s'appelle Nantissement; elle s'appelle aussi Gage, et en Latin, Pignus. Le nantissement diffère de l'hypothèque en ce que le nantissement se fait par la tradition de la chose qui est remise entre les mains du créancier; au lieu que l'hypothèque est un droit que le créancier acquiert dans les biens de son débiteur, qui en sont susceptibles, sans que son débiteur lui en fasse aucune tradition qui est essentielle à ce contrat" (1). "Le nantissement est un contrat par lequel un débiteur remet une chose à son créancier pour sûreté de la dette. Le nantissement d'une chose mobilière s'appelle gage" (c). "The word Pawn signifies the appropriation of the thing given for the security of the engagement" (d). Passing from lawyers to lexicographers, a pawn is defined by Johnson (and by Latham) as "something given to pledge as security for money borrowed, or promise made;" by Webster as "something given or deposited as security for the payment of money borrowed; a pledge;" and by Craig, as something given in pledge as a security for the payment of money borrowed, or promise made.” Johnson says that "the verb to pawn is seldom used but of pledges given for money;" but Richardson, more (a) Code of Louisiana, 1825. (b) Pothier, De Nantissement, Art. Prelim. correctly, recognizes the more extended use of the verb as meaning "to give or deliver; to place in the hands of; to deposit anything as gage, warranty, or security; to plight or pledge; to stake." The above authorities concur in describing the subject matter of the contract as something capable of manual delivery, such as goods and personal chattels, including money (a), bills of exchange, promissory notes, and similar securities. Bills of lading, dock warrants and delivery orders are constantly pledged, but in such cases the deposit operates rather as a constructive delivery of the goods represented by the documents than as a pledge of the documents themselves (b). Pothier (c) mentions "meubles corporels et l'argent comptant" as the ordinary subjects of the contract of pawn, adding that "A l'égard des choses incorporelles, telles que sont les dettes actives, elles ne sont pas susceptibles du contrat de nantissement, puisqu'elles ne sont pas susceptibles d'une tradition réelle, qui est de l'essence de ce contrat." And though this is apparently qualified by the passage, "les héritages peuvent être aussi l'objet de ce contrat...... lorsqu'on met un créancier en possession d'un héritage, pour qu'il en percoive les fruits en déduction de ses créances jusqu'au parfait paiement" (d), this latter example is not a pledge of the heritage, but is analogous to the appointment of a receiver of rents by a mortgagee, who has been compelled to resort to that means of realizing his security. Ortolan says that (e), "Ce droit (de gage ou hypothéque), peut avoir pour objet aussi bien les meubles que les immeubles, les choses incorporelles que les choses corporelles." (a) Isaac v. Clark, 2 Bulst. 306. (b) Meyerstein v. Barber, L.R. 2 C.P. 38, 661. L.R. 4 C.P. 317. L.R. 4 H.L. 317. 36 L.J., 289 C.P. 39 L.J., 187 C.P. (H.L.). 15 L.T. N.S. 355. 16 L.T. N.S. 569. 15 W.R. 173, 998. (c) De Nantissement, cap. 1, art. 1, sec. 1, pp. 5 & 6. (d) De Nantissement, cap. 1, art. 1, sec. 1, p. 5. (e) Explication Historique des Institutes de Justinian, liv. 2, s. 513. Of the above definitions, Story (a) prefers that of Domat, as the most accurate, because the most comprehensive; but that of Mr. Fisher () is still more complete, as it includes cases in which the thing pledged was in the creditor's possession at the time of making the contract, as well as the ordinary case of delivering the pledge when the contract is made. From the foregoing authorities, Pawn may be described as a contract by which one party thereto bails to the other such personal property as is capable of manual delivery, as security for the payment of a debt, the fulfilment of an obligation, or the discharge of an undertaking. This contract differs from hypothec in requiring the actual delivery of the thing pledged. The rights conferred by it are inferior to those acquired by a mortgage, under which the mortgagee becomes the absolute legal owner of the subject matter, subject only to the mortgagor's equitable right to redeem; but as a right to sell the pawn on nonredemption at a certain time is an ordinary incident of the contract, they are greater than those given by lien, which only enables the creditor to retain the thing in his possession until his lien is satisfied. The debtor, or person pawning, is called the pawnor; the creditor, or recipient of the pledge, is called the pledgee or pawnee. Pawnees who make a business of advancing money on pledges not exceeding £10 in value, are called Pawnbrokers (c), and are subject to numerous statutory regulations from which ordinary pawnees are exempt. (a) On Bailments, sec. 286. CHAPTER II. OF THE MANNER OF PAWNING. "It is of the essence of the Contract of Pawn that there should be an actual delivery of the thing pledged to the pledgee, for if the thing be not in possession, I cannot grant it as a pawn (a). In this respect English law differs from Roman, for though in one passage already quoted (b) it is said that, res quæ pignori dantur manu traduntur, and in another (c), Pignoris appellatione eam proprie rem contineri dicimus, quæ simul etiam traditur creditori, maxime si mobilis sit, a pledge was nevertheless valid without delivery, and the pawnee could recover it in an action, quasi Serviana, though it had never been in his possession. The term hypotheca was limited to contracts, by which res sine traditione nuda conventione tenetur (d), thus pretty closely resembling our own equitable assignments-contracts by which a debtor, while retaining a chattel in his possession, agrees to appropriate it to a creditor as security for the discharge of a particular obligation. This, however, does not constitute a pledge, because "delivery is the essence of an English pawn" (e), and though the Roman law differed, "yet other countries adopting the Roman law have corrected this, so that if a pawn be not delivered, it shall not affect a purchaser for valuable consideration" (f). Upon the principle that “a pawn is complete by delivery, but a sale is complete by (a) Story On Bailments, sec. 297. (c) Institutes, Lib. 4, tit. 6, sec. 7. (e) Ryall v. Rolle, 1 Atk., 165. (f) Ibid, 166. |