In Donald v Suckling (1866), the court clarified whether a pledge of goods without transfer of possession was valid. The case explored bailment and possession, establishing the requirement that control or delivery of goods is essential to create a valid pledge under the law of personal property.
Right to Re-pledge: The court ruled that a pawnee could re-pledge the pledged item to a third party without terminating the original pledge agreement, provided the terms were respected. The pawnee’s rights and interest in the pledged property remain intact until the original debt is satisfied, giving legal protection to subsequent holders of the pledged goods.
