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Contract and Commercial Law Act 2017

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

303: Rights acquired by exchange of goods or documents

You could also call this:

“Trading goods or papers: What you need to know about swapping stuff”

When you want to sell, pledge, or do something else with goods under this part of the law, you need to give something in return. This can be money, other goods, a document that shows you own other goods, a financial document that can be traded, or anything else of value.

If you’re a mercantile agent (someone who sells or buys things for others) and you pledge goods in exchange for other goods, documents showing ownership of goods, or tradable financial documents, there’s a special rule. The person you’re pledging to can only claim rights to your pledged goods up to the value of what they gave you in exchange. They can’t claim more than that.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844647.

Topics:
Business > Fair trading Money and consumer rights > Consumer protection
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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"

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304: Agreements through employees or other authorised persons, or

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

303Rights acquired by exchange of goods or documents

  1. The consideration necessary for the validity of a sale, a pledge, or any other disposition of goods for the purposes of this subpart may be—

  2. a payment in cash; or
    1. the delivery or transfer of—
      1. other goods; or
        1. a document of title to other goods; or
          1. a negotiable security; or
          2. any other valuable consideration.

            1. However, if a mercantile agent pledges goods in consideration of the delivery or transfer of other goods, or of a document of title to other goods, or of a negotiable security, the pledgee acquires no right to or interest in the pledged goods in excess of the value of the goods, documents, or security when so delivered or transferred in exchange.

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