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Contract and Commercial Law Act 2017

Other commercial matters - Mercantile agents

296: Interpretation

You could also call this:

“This part explains important words used in rules about buying, selling, and moving things.”

In this part of the law, you’ll learn about some important words and what they mean. These definitions help you understand the rules about buying, selling, and moving goods.

A “document of title” is a special paper that proves you own or control some goods. This could be things like a bill of lading (a receipt for shipped goods), a warehouse certificate, or an order for delivering goods. It can also be any document that shows you have goods or lets you give those goods to someone else.

“Goods” means all kinds of things you can move around and own, even animals.

A “mercantile agent” is someone who, as part of their job, can sell goods, send goods to be sold, buy goods, or use goods as security to borrow money.

A “pledge” is when you promise to give someone your goods as security. This could be for money they give you now, money they might give you later, or any other money you owe them.

The law also says that you “possess” goods or documents if you’re actually holding them, or if someone else is holding them for you or under your control.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844627.

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295: Certain other Acts not affected, or

"This law doesn't change rules about special goods like dangerous items"

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297: Sale, pledge, or other disposition by agent in possession with owner’s consent is valid, or

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Part 5 Other commercial matters
Mercantile agents

296Interpretation

  1. In this subpart, unless the context otherwise requires,—

    document of title includes—

    1. a bill of lading, a dock warrant, a warehouse keeper’s certificate, and a warrant or an order for the delivery of goods; and
      1. any other document—
        1. that is used in the ordinary course of business as proof of the possession or control of goods; or
          1. that authorises or purports to authorise, either by endorsement or by delivery, the possessor of the document to transfer or receive the goods represented by the document

          goods includes all kinds of movable personal property, including animals

            mercantile agent means an agent who has, in the ordinary course of the agent’s business as an agent, authority to—

            1. sell goods; or
              1. consign goods for the purpose of sale; or
                1. buy goods; or
                  1. raise money on the security of goods

                    pledge includes any contract pledging or giving a lien or security on goods, whether in consideration of—

                    1. an original advance; or
                      1. any further or continuing advance; or
                        1. any monetary liability.

                        2. A person (A) must be treated as being in possession of goods, or of the documents of title to goods, if the goods or documents—

                        3. are in A’s actual custody; or
                          1. are held by any other person subject to A’s control or for A or on A’s behalf.

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