Section 178Pledge by mercantile agent

s. 178

178. Pledge by mercantile agent [Where a mercantile agent is, with the consent of the owner, in possession of goods or the documents 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 authorized 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 not authority to pledge. Explanation – In this section, the expressions 'mercantile agent' and 'documents of title' shall have the meanings assigned to them in the Sale of Goods Act, 1930.

1. 14. Sections 178 and 178A were substituted, for section 178 by section 2 of the Indian Contract (Amendment) Act, 1930 (Act No. IV of 1930)