Plain language law

New Zealand law explained for everyone

Contract and Commercial Law Act 2017

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

305: Consignee’s lien

You could also call this:

“Your right to keep goods until you're paid, even if the sender isn't the owner”

When the owner of goods gives them to someone else to sell or send, or ships them using someone else’s name, you need to know about a special rule. This rule applies when the person receiving the goods doesn’t know that the person sending them isn’t the real owner.

If you’re the person receiving these goods, and you’ve given money to the person who sent them, you have a right to keep the goods until you get your money back. This right is called a lien. You can have this lien even if the person who sent you the goods isn’t the real owner.

If you want, you can give this right to someone else. This means you can transfer your lien to another person.

It’s important to know that this rule doesn’t change or limit any other rules about selling, pledging, or doing other things with goods when you’re acting as a business agent.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844649.

Topics:
Business > Industry rules Business > Fair trading Money and consumer rights > Consumer protection
Previous

304: Agreements through employees or other authorised persons, or

"Agreements made with a business agent's workers or helpers are the same as deals made with the agent"

Next

306: Effect of transfer of document of title to goods on vendor’s lien and right of stopping goods in transit, or

"How giving someone a document showing they own goods affects the seller's rights"

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

305Consignee’s lien

  1. This section applies if—

  2. an owner of goods has—
    1. given possession of the goods to another person (A) for the purpose of consignment or sale; or
      1. shipped the goods in the name of another person (A); and
      2. the consignee of the goods has not had notice that A is not the owner of the goods.

        1. The consignee, in respect of advances made to or for the use of A, has the same lien on the goods as if A were the owner of the goods.

        2. The consignee may transfer the lien to another person.

        3. Nothing in this section limits or affects the validity of any sale, pledge, or other disposition by a mercantile agent.

        Compare