Section 7

Question 1

Classification of Liens.

Answer 1

Particular Liens, is the right of a person in possession of goods to retain possession until payment has been made by their owner. Under common law, the person retaining the goods has no immediate right to sell them and can only keep it until his charges are settled. But in some cases, the goods may then be auctioned off, if the lien isn’t discharged after 90 days.

General Liens, is a right of custom or professions, to retain goods until the amount owed is being paid.

Contractural Liens, are liens which arise in respect of some payment due under contract. E.g. By tradition seaman has a lien over the ship for his wages.

Damage Liens, arise normally from a collision damage.
1. Damage must be done by THE SHIP
2. Damage must be proved to be due to a wrongful act or neglect
3. Lien can be exercised only within 2 years of date of damage

Question 2

Lien order of priority.

Answer 2

1. Salvage
2. Seaman’s wages
3. Master’s wages
4. Bottomry and respondentia Bond holders