What is Pledge by mercantile agent? Section 178 of Indian Contract Act 1872
178. 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 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 of the pledge notice that the pawnor has no authority to pledge.
Explanation.-In this section, the expressions "mercantile agent" and "documents of title" shall have the meanings assigned to them in the 2Indian Sale of Goods Act, 1930 (3 of 1930).
Bailment of pledges
Suits by bailees or bailors against wrong-doers
CHAPTER X AGENCY
Appointment and authority of agents