Hong Kong Ordinances

FACTORS ORDINANCE - SECT 3

Powers of mercantile agent with respect to disposition of goods

DISPOSITIONS BY MERCANTILE AGENTS

(1) Where a mercantile agent is, with the consent of the owner, in possession
of goods or of the documents of title to goods, any sale, pledge, or other
disposition of the goods, made by him when acting in the ordinary course of
business of a mercantile agent, shall, subject to the provisions of this
Ordinance, be as valid as if he were expressly authorized by the owner of the
goods to make the same: Provided that the person taking under the disposition
acts in good faith, and has not, at the time of the disposition, notice that
the person making the disposition has not authority to make the same.

(2) Where a mercantile agent has, with the consent of the owner, been in
possession of goods or of the documents of title to goods, any sale, pledge,
or other disposition, which would have been valid if the consent had
continued, shall be valid notwithstanding the determination of the consent:
Provided that the person taking under the disposition has not, at the time
thereof, notice that the consent has been determined.

(3) Where a mercantile agent has obtained possession of any documents of title
to goods by reason of his being or having been, with the consent of the owner,
in possession of the goods represented thereby, or of any other documents of
title to the goods, his possession of the first-mentioned documents shall, for
the purposes of this Ordinance, be deemed to be with the consent of the owner.

(4) For the purposes of this Ordinance, the consent of the owner shall be
presumed in the absence of evidence to the contrary.