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Contract and Commercial Law Act 2017

Other commercial matters - Mercantile agents - Sales, pledges, and other dispositions by mercantile agents

301: Effect of pledges of documents of title

You could also call this:

“Promising papers that prove you own something is like promising the actual thing”

When someone pledges documents that show they own certain goods, it’s the same as if they pledged the actual goods themselves. This means that if you give someone papers that prove you own something as a kind of promise, it’s just like giving them the thing itself. For example, if you have a piece of paper that says you own a car, and you pledge that paper to someone, it’s treated the same as if you pledged the car itself.

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Business > Fair trading Money and consumer rights > Banking and loans
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300: Provisions relating to consent, or

"Rules about agreeing to let someone handle your stuff"

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302: Pledge of goods as security for existing debt or liability, or

"Using goods you don't fully own to pay off a debt you already have"

Part 5 Other commercial matters
Mercantile agents: Sales, pledges, and other dispositions by mercantile agents

301Effect of pledges of documents of title

  1. A pledge of the documents of title to goods must be treated as being a pledge of the goods.

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