Section 178 - Pledge by mercantile agent : Indian Contract Act 1872

What is Pledge by mercantile agent? Section 178 of Indian Contract Act 1872

Section 178 of Indian Contract Act 1872 : "Pledge by mercantile agent"

178. Where 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 no authority to pledge.

Explanation.-In this section, the expressions "mercantile agent" and "documents of title" shall have the meanings assigned to them in the 2Indian Sale of Goods Act, 1930 (3 of 1930).

INDIAN CONTRACT ACT 1872

Section 166 - Bailee not responsible on redelivery to bailor without title

Section 167 - Right of third person claiming goods bailed

Section 168 - Right of finder of goods, may sue for specific reward offered

Section 169 - When finder of thing commonly on sale may sell it

Section 170 - Bailee's particular lien

Section 171 - General lien of bankers, factors, wharfingers, attorneys and policy-brokers

Bailment of pledges

Section 172 - Pledge pawnor and pawnee defined

Section 173 - Pawnee's right of retainer

Section 174 - Pawnee not to retain for debt or promise other than that for which goods pledged. Presumption in case of subsequent advances

Section 175 - Pawnee's right as to extraordinary expenses incurred