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).