ICA Section 178: Pledge by mercantile agent
Indian Contract Act, 1872 · Chapter 9: Bailment
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178. Pledge by mercantile agent . 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 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 Indian Sale of Goods Act, 1930. (3 of 930).
Official reference: India Code, Legislative Department — checked: 29 September 2026.
This text is for reference, not legal advice. Consult the official source for the authoritative text.
Other sections in this chapter
- 148. "Bailment", "bailor" and "bailee" defined
- 149. Delivery to bailee how made
- 150. Bailor's duty to disclose faults in goods bailed
- 151. Care to be taken by bailee
- 152. Bailee when not liable for loss, etc. of thing bailed
- 153. Termination of bailment by bailee's act inconsistent with conditions
- 154. Liability of bailee making unauthorized use of goods bailed
- 155. Effect of mixture, with bailor's consent, of his goods with bailee's
- 156. Effect of mixture, without bailor's consent when the goods can be separated
- 157. Effect of mixture, without bailor's consent, when the goods cannot be separated
- 158. Repayment, by bailor, of necessary expenses
- 159. Restoration of goods bailed, on expiration of time or accomplishment of purpose
- 160. Return of goods bailed, on expiration of time or accomplishment of purpose
- 161. Bailee's responsibility when goods are not duly returned
- 162. Termination of gratuitours bailment by death
- 163. Bailor entitled to increase or profit from goods bailed
- 164. Bailor's responsibility to bailee
- 165. Bailment by several joint owners
- 166. Bailee not responsible on re-delivery to bailor without title
- 167. Right of third person claiming goods bailed
- 168. Right of finder of goods may sue for specific reward offered
- 169. When Finder of thing commonly on sale may sell it
- 170. Bailee's particular lien
- 171. General lien of bankers, factors, wharfingers, attorneys, and policy brokers
- 172. "Pledge", "pownor" and "pawnee" defined
- 173. Pawnee's right of retainer
- 174. Pawnee not to retain for debt or promise other than that for which goods pledged: Presumption in case of subsequent advances
- 175. Pawnee's right to extraordinary expenses incurred
- 176. Pawnee's right where pawnor makes default
- 177. Defaulting pawnor's right to redeem
- 178A. Pledge by person in possession under voidable contract
- 179. Pledge where pawnor has only a limited interest suits by bailors against wrong-doers
- 180. Suit by bailor or bailee against wrong-doer
- 181. Apportionment of relief or compensation obtained by such suits