Australian Capital Territory Current Acts

MERCANTILE LAW ACT 1962 - SECT 7

    (1)     For this part—

        (a)     a mercantile agent in possession of goods or of the documents of title to goods is taken to have been entrusted with the goods or documents as a mercantile agent until the contrary is shown; and

        (b)     a mercantile agent entrusted as a mercantile agent with, and possessed of, the documents of title to goods, whether derived immediately from the owner of the goods or obtained by reason of the agent having been entrusted with the possession of the goods or of any other document of title to the goods, is taken to be entrusted with the possession of the goods; and

        (c)     a mercantile agent is taken to be possessed of goods or documents of title to goods whether the goods or documents, as the case may be, are in the actual custody or control of the mercantile agent or are held by another person subject to the control of, or for or on behalf of, the mercantile agent; and

        (d)     a contract, whether made directly with a mercantile agent or with a clerk, or other person, on behalf of a mercantile agent, is taken to be a contract with the mercantile agent; and

        (e)     a pledge of the documents of title to goods is taken to be a pledge of the goods.

    (2)     If—

        (a)     an advance is made honestly to a mercantile agent entrusted as a mercantile agent with the possession of goods, or documents of title to goods, relying on a written agreement to consign, deposit, transfer or deliver the goods or documents; and

        (b)     the goods or documents are received by the person making the advance without notice that the mercantile agent was not authorised to make the pledge;

the advance is taken, for this part, to be an advance on the security of the goods or documents even though the goods or documents are not received by the person making the advance until after the advance is made.