Lawgist178Pledge by mercantile agent
1Where a mercantile agent is, with the consent of the owner, in possession of goods or the document of title to goods, any pledge made by him, when acting in the ordinary course of business of a mercantile agent, shall be as valid as if he were expressly authorised by the owner of the goods to make the same; provided that the pawnee acts in good faith and has not at the time of the pledge notice that the pawnor has not authority to pledge.
Explanation.-- In this section, the expressions mercantile agent and "documents of title" shall have the meanings assigned to them in the Indian Sale of Goods Act, 1930 (3 of 1930).
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1. Ss. 178 and 178A subs. by Act 4 of 1930, s. 2, for the original s. 178.
- 172 "Pledge", "Pawnor" and "Pawnee" defined
- 173 Pawnee's right of retainer
- 174 Pawnee not to retain for debt or promise other than that for which goods pledged
- 175 Pawnee's right as to extraordinary expenses incurred
- 176 Pawnee's right where pawnor makes default
- 177 Defaulting pawnor's right to redeem
- 178 Pledge by mercantile agent
- 178A Pledge by person in possession under voidable contract
- 179 Pledge where pawnor has only a limited interest
