1 Sects. 1 and 2 are now cited as в§ 72 of " The Lien Law " (l. 1897,

c. 418, repealing §§ 1 and 2 of L. 1830, o. 179).

37G appendix.

anj' other person, for the sale or dispositiou of the whole or any

part of such merchandise, for any money advanced, or negotiable

Instrument or otlier obligation in writing given by such other

person upon tlie faith thereof.

В§ 4. Every person who shall hereafter accept or take any such

merchandise in deposit for any such agent, as a security for any

antecedent debt or demand, shall not acquire thereby, or enforce

any right or interest in or to such merchandise or document,

other than was possessed or might have been enforced by such

agent at the time of such deposit.

В§ 5. Nothing contained in the two last preceding sections of

this act, shall be construed to prevent the true owner of any mer-

chandise so deposited, from demanding or receiving the same,

upon repayment of the money advanced, or on restoration of the

security given, on the deposit of such merchandise, and upon sat-

Isfying such lien as may exist thereon in favor of the agent who

may have deposited the same; nor from recovering any balance

which may remain in the hands of tlie person with whom such

merchandise shall have been deposited, as the produce of the sale

thereof, after satisfying the amount justly due to such person by

reason of sucli deposit.

В§ 6. Nothing contained in this Act shall authorize a common

carrier, warehouse-keeper, or other person to whom merchandise

or other property may be committed for transportation or storage

only, to sell or hypothecate the same.

В§ 7. [Repealed by L. 1886, ch. 593.]

В§ 8. Nothing contained in the last preceding section, shall be

construed to prevent the Court of Chancery from compelling dis-

covery, or granting relief upon any bill to be filed in that court

by the owner of any merchandise so intrusted or consigned,

against the factor or agent by whom such merchandise shall have

been applied or sold contrary to the provisions of the said section,

or against any person who shall have been knowingly a party to

such fraudulent application or sale thereof ; but no answer to any

such bill shall be read in evidence against the defendant making

the same, on the trial of any indictment for the fraud charged in

the bill.

FACTORS ACTS. 377

ENGLISH FACTORS ACT, 1889.

52 & 53 Vict. C. 45.

An Act to Amend and Consolidate the Factors Acts.

[26th August, 1889.]

Be it enacted by the Queen's most Excellent Majesty, by and with

the advice and consent of the Lords Spiritual and Temporal,

and Commons, in this present Parliament assembled, and by

the authority of the same, as follows : —

Preliminary.

1. For the Purposes of this Act — (1) The expression "mer-

cantile agent" shall mean a mercantile agent having in the cus-

tomary course of his business as such agent authority either to

sell goods, or to consign goods for the purpose of sale, or to buy

goods, or to raise money on the security of goods : (2) A person

shall be deemed to be in possession of goods or of the documents

of title to goods, where the goods or documents are in his actual

custody or are held by any other person subject to his control or

for him or on his behalf: (3) The expression "goods" shall

include wares and merchandise : (4) The expression " document

of title " shall include any bill of lading, dock warrant, warehouse-

keeper's certificate, and warrant or order for the delivery of

goods, and any other document used in the ordinary course of

business as proof of the possession or control of goods, or author-

izing or purporting to authorize, either by endorsement or by

delivery, the possessor of the document to transfer or receive

goods thereby represented : (5) The expression " pledge " shall

include any contract pledging, or giving lien or security on, goods,

whether in consideration of an original advance or of any further

or continuing advance or of any pecuniary liability : (6) The ex-

pression " person " shall include any body of persons corporate or

unincorporate.

Disposition by Mercantile Agents.

2. — (1) "Where a mercantile agent is, with the consent of the

owner, in possession of goods or of the documents of title to

goods, any sale, pledge, or other disposition of the goods, made

378 APPENDIX.

by him when acting in the ordinary course of business of a mer-

cantile agent, shall, subject to the provisions of this Act, be as

valid as if he were expressly authorized by the owner of the

goods to make the same ; provided that the person taking under

the disposition acts in good faith, and has not at the time of the

disposition notice that the person making the disposition has not

the authority to make the same. (2) Where a mercantile agent

has, with the consent of the owner, been in possession of goods

or of the documents of title to goods, any sale, pledge, or other

disposition, which would have been valid if the consent had con-

tinued, shall be valid notwithstanding the determination of the

consent : provided that the person taking under the disposition

has not at the time thereof notice that the consent has been de-

termined. (3) Where a mercantile agent has obtained possession

of any documents of title to goods by reason of his being or hav-

ing been, with the consent of the owner, in possession of the

goods represented thereby, or of any other documents of title to

the goods, his possession of the first-mentioned documents shall,

for the purposes of this Act, be deemed to be the consent of the

owner. (4) Yov the purposes of this Act the consent of the

owner shall be presumed in the absence of evidence to the con-

trary.

3. A pledge of the documents of title to goods shall be deemed

to be a pledge of the goods.

4. AVhere a mercantile agent pledges goods as security for a

debt or liability due from the pledgor to the pledgee before the

time of the ])ledge, the pledgee shall acquire no further right to

the goods than could have been enforced by the pledgor at the

time of the pledge.

5. The consideration necessary for the validity of a sale,

pledge, or other disposition, of goods, in pursuance of this Act,

may be either a payment in cash, or the delivery or transfer of

other goods, or of a document of title to goods, or of a negotiable

security, or any other valuable consideration ; but where goods

are pledged by a mercantile agent in consideration of the delivery

or transfer of other goods, or of a document of title to goods, or

of a negotiable security, the pledgee shall acquire no right or in-

terest in the goods so pledged in excess of the value of the goods,

documents, or security when so delivered or transferred in ex-

change.