Lien

Lien (from the French lien, a "tie" or "band"), is a right in one person to retain that in his or her possession belonging to another till certain demands of the holder or person in possession are satisfied.

Liens arise either by express contract, by usage of trade, or where there is some legal relation. (1) Where by express contract it is simply pawn, mortgage, or pledge, which are then the most appropriate terms, or it is an agreement (such as that between principal and factor) that goods intrusted by one person to another for the purpose of sale or for some other purpose than pledge, may be retained by the party intrusted with them as a security for any debt or balance due from the other; or it is an agreement that he may retain the proceeds of things intrusted to him to sell for the same purpose. (2) The lien by usage. The "usage of trade" is evidence from which contract is to be implied; parties who mutually act in conformity to a custom have in effect, though not in form, made a contract. (3) The term legal relation is only another mode of expressing the mutual rights and duties of the same parties, who by their acts have brought themselves within the limits of a custom, and so shown an intention to make a contract. Thus an innkeeper has a lien upon the horse of his guest which he takes into his stable to feed. Lien, unless by express contract or custom to the contrary, must from its nature be particular, that is, must have reference to a particular transaction and to a particular thing. Where it is general, that is, exists with respect to other transactions also, there must be express contract, or the dealings of the parties must be such as to create that implied contract which arises from acts done in conformity to well-known usage. A lien may be lost by voluntarily parting with the thing, or by express agreement, or by agreement to be implied from acts. In general, one who has a lien for a debt waives it by taking security. The doctrine of lien continually gives rise to numerous and intricate legal questions.