In a sale, ownership can transfer when the contractual requirements are met. In a deposit, the purpose is safekeeping rather than debt security. In a pledge, ownership remains with the pledgor while a right of retention supports the creditor's claim.
These are practical distinctions: handing jewellery to a friend for safekeeping is not repayment of a loan; pledging it to secure a debt is not a sale; and selling it is not simply another name for pledge.
Each arrangement has a different purpose and legal effect.
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Do not confuse pledge, trust and sale
Kitab al-Rahn: Pledge Formation, Possession, Liability and Eligible Collateral
In a sale, ownership can transfer when the contractual requirements are met. In a deposit, the purpose is safekeeping rather than debt security. In a pledge, ownership remains with the pledgor while a right of retention supports the creditor's claim.
These are practical distinctions: handing jewellery to a friend for safekeeping is not repayment of a loan; pledging it to secure a debt is not a sale; and selling it is not simply another name for pledge.
Each arrangement has a different purpose and legal effect.