Australian Capital Territory Current Acts

MERCANTILE LAW ACT 1962 - SECT 8

    (1)     This section applies if—

        (a)     a mercantile agent pledges goods in consideration of the delivery or transfer of—

              (i)     other goods; or

              (ii)     documents of title to other goods; or

              (iii)     negotiable securities; and

        (b)     because of the pledge, the person (the pledgee ) who delivers or transfers the goods, documents or securities obtains a valid and available lien and security in relation to a previous advance under an agreement made with the mercantile agent; and

        (c)     the pledgee acts honestly and without notice that the mercantile agent did not have authority to make the pledge.

    (2)     The pledge is taken to be in consideration of an advance under this part as if there had been an actual advance of money, but the pledgee does not acquire any right or interest in excess of the value of the goods, documents or negotiable securities when they are delivered or transferred.