chapter  6
What is the distinction between a lien and tracing? 7 What is the distinction between subrogation and liens? 8 Is an admiralty action in rem a kind of lien?
Pages 2

As appears therefrom, by the present proceedings the administrator of the company claims the delivery up of certain plant as property of the company together with damages for its wrongful retention. The council has refused delivery up in reliance on its contractual rights under the standard form of contract issued by the Institution of Civil Engineers. Clause 63(1) of this contract grants the council two distinct rights in the event of the company being expelled from the site. One is the right to retain possession of the plant and use it to complete the works without further payment to the company. The other is the right to sell plant on completion of the works as well as plant not required to complete the works and to apply the proceeds of sale towards whatever sums might be or become due from the company under the contract. The administrator contends that these rights constitute a floating charge which is void against him for want of registration under s 395 of the Companies Act 1985. The judge held that the rights in question constitute a fixed but not a floating charge and accordingly do not require registration…

There are only four kinds of consensual security known to English law: (i) pledge; (ii) contractual lien; (iii) equitable charge; and (iv) mortgage. A pledge and a contractual lien both depend on the delivery of possession to the creditor. The difference between them is that in the case of a pledge the owner delivers possession to the creditor as security, whereas in the case of a lien the creditor retains possession of goods previously delivered to him for some other purpose. Neither a mortgage nor a charge depends on the delivery of possession. The difference between them is that a mortgage involves a transfer of legal or equitable ownership to the creditor, whereas an equitable charge does not.