Pledge by mercantile agent valid if pawnee acts in good faith and lacks notice of no authority. When a mercantile agent, with the owner's consent, possesses goods or documents of title, a pledge made by him in the ordinary course of his mercantile business is as valid as if he were expressly authorised by the owner, provided the pawnee acts in good faith and does not have notice that the pawnor lacks authority to pledge.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Pledge by mercantile agent valid if pawnee acts in good faith and lacks notice of no authority.
When a mercantile agent, with the owner's consent, possesses goods or documents of title, a pledge made by him in the ordinary course of his mercantile business is as valid as if he were expressly authorised by the owner, provided the pawnee acts in good faith and does not have notice that the pawnor lacks authority to pledge.
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