Definitions
- A legal term used to describe a type of mortgage or loan secured by property. - Referring to the act of pledging property as collateral for a loan. - Talking about a type of security agreement where the borrower retains possession of the property.
- Referring to a promise or commitment to do something. - Talking about a formal promise to donate money or support a cause. - Describing a type of security agreement where the borrower gives possession of the property to the lender.
List of Similarities
- 1Both involve a type of agreement or commitment.
- 2Both can be used in a financial context.
- 3Both can involve property or assets as collateral.
- 4Both can have legal implications.
- 5Both require trust between parties involved.
What is the difference?
- 1Type of agreement: Wadset refers specifically to a type of mortgage or loan agreement, while pledge can refer to a broader range of commitments and promises.
- 2Ownership: In a wadset, the borrower retains possession of the property, while in a pledge, the lender takes possession of the property.
- 3Purpose: A wadset is primarily used to secure a loan, while a pledge can be used for various purposes, such as making a promise or supporting a cause.
- 4Legal implications: Wadset is a legal term used mainly in Scotland, while pledge is a more common term used in everyday language.
- 5Formality: Wadset is a more formal term, while pledge can be used in both formal and informal contexts.
Remember this!
Wadset and pledge are both terms used to describe agreements or commitments involving property or assets. However, the difference between wadset and pledge is their ownership, purpose, and legal implications. A wadset is a type of mortgage or loan agreement where the borrower retains possession of the property, while a pledge involves the lender taking possession of the property. Additionally, wadset is a more formal term used mainly in Scotland, while pledge is a more versatile term used in various contexts.
