Indian Contract Act,1872

Act No : 9

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Section : Pledge by mercantile agent

2*[178. Pledge by mercantile agent.-Where a mercantile agent is,with the consent of the owner, in possession of goods or the documentof title to goods, any pledge made by him, when acting in the ordinarycourse of business of a mercantile agent, shall be as valid as if hewere 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 ofthe pledge notice that the pawnor has not authority to pledge. Explanation.-In this section, the expressions " mercantile agentand " documents of title " shall have the meanings assigned to them inthe Indian Sale of Goods Act, 1930. (3 of 1930). 178A. Pledge by person in possession under voidable contract.-When the pawnor has obtained possession of the goods pledged by himunder a contract voidable under section 19 or section 19A, but thecontract has not been rescinded at the time of the pledge, the pawneeacquires a good title to the goods, provided he acts in good faith andwithout notice of the pawnor's defect of title.]

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