Victorian Consolidated Legislation

Goods Act 1958 - SECT 69

Pledges by way of exchange protected

69. Pledges by way of exchange protected

Where a mercantile agent pledges goods in consideration of the delivery or
transfer of any other goods or documents of title to goods or negotiable
securities upon which the person delivering or transferring the same had at
the time a valid and available lien and security for or in respect of a
previous advance by virtue of some contract or agreement made with such agent
such pledge if the pledgee acts in good faith and without notice that such
agent had not authority to make the same shall be deemed to be in
consideration of an advance within the meaning of this Part as if there had
been a present advance of money but the pledgee shall acquire no right or
interest in excess of the value of the goods documents or negotiable
securities when so delivered or transferred.