FACTORS ORDINANCE, 1896
Title
FACTORS ORDINANCE, 1896
Description
ORDINANCE No. 3 OF 1896.
Factors
AN ORDINANCE to consolidate and amend the Law relating
to Factors.
[1st July,1896.]
BE it enacted by the Governor of Hongkong,with the advice and
consent of the Legislative Council thereof,as follows:-
Preliminary Provisions.
1.This Ordinance may be cited as the Factors Ordinance,1896. 3.For the purposes of this Ordinance-
'Merchantile agent' means a merchantile agent having ,in the
customary course of his business as such agent,authority either to
sell goods,or to consign goods for the purpose of sale,or to buy
goods,or to raise money on the security of goods:
A person shall be deemed to be in possession of goods or of the
documents of title to goods,where the goods or documents are in
his actual custody or are held by any other person subject to his
control,or for him,or on his behalf:
'Goods' include wares and merchandise:
'Document of title' includes any bill of lading,dock warrant,
warehouse-keeper's certificate,and warrant or order for the delivery
of goods,and any other document used in the ordinary course of
busines as proof of the possession or control of goods,or authoriz-
ing or purporting to authorize,either by indorsement or by delivery,
the possessor of the document to transfer or receive goods thereby
represented:
'Pledge' includes any contract pledging,or giving a lien or
security on,goods,whether in consideration of an original advamce,
or of any further or continuing advance,or of any pecuniary liability:
'Person' includes any body of persons corporate or unincorporate.
Dispositions by Merchantile Agents.
3.-(1.)Where a merchantile 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 merchantile 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 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 merchantile agent has,with the consent of the owner,
been in possession of goods or of the documents of title t 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 merchantile 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 hereby
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.
4.A pledge of the documents of title to goods shall be deemed to be
a pledge of the goods.
5.Where a merchantile agent pledges goods as security for a debt or
liability due from the pledgor to the pledgee before the time of the
pledge,the pledgee shall acquire no further right to the goods than
could have been enforced by the pledgor at the time of the pledge.
6.The consideration necessary for the validity of a sale,pledge,or
other disposition of goods,in pursuance of this Ordinance,may be either
a payment in cash,or the delivery or transfer of other goods,or of a
document of title ot goods,or fo a negotiable security,or any other valu-
able consideration;but where goods are pledged by a merchantile agent
in consideration of the delivery or transfer of other goods,or of a docu-
ment of title to goods,or of a negotiable security,the pledgee shall acquire
no right or interest in the goods so pledged in excess of the value of the
goods,document,or security when so delivered or transferred in
exchange.
7.For the purposes of this Ordinance,an agreement made with a
merchantile agent through a clerk or other perosn authorized in the
ordinary course of business to make contracts of sale or pledge on his
behalf shall be deemed to be an agreement with the agent.
8.-(1.)Where the owner of goods has given possession of the goods
to another person for the purpose of consignment or sale,or has shipped
the goods inthe name of another person,and the consignee of the goods
has not had notice that such person is not the owner of the goods,the
consignee shall,in respect of advances made to or for the use of such
person,have the same lien on the goods as if such person were the owner
of the goods,and may transfer any such lien to another perosn.
(2.)Nothing in this section shall limit or affect the validity of any
sale,pledge,or disposition by a merchantile agent.
Dispositions by Sellers and Buyers of Goods.
9.Where a person,having sold goods,continues,or is,in possession
of the goods or of the documents of title to the goods,the delivery or
transfer by that person,or by a merchantile agent acting for him,of the
goods or documents of title under any sale,pledge,or other disposition
therreof,or under any agreement for sale,pledge,or other disposition thereof,to any person receiving the same in good faith and without
notice of the previous sale,shall have the same effect as if the perosn
asking the delivery or transfer were expressly authorized by the owner
of the goods to make the same.
10.Where a person,having bought or agreed to buy goods,obtains,
with the consent of the seller,possession of the goods or the documents
of title to the goods,the delivery or transfer,by that person or bya
merchantile agent acting for him,of the goods or documents of title,
under any sale,pledge,or other disposition thereof,or uynder any agree-
ment for sale,pledge,or other disposition thereof,to any person receiving
the same in good faith and without notice of any lien or other right of
the original seller in respect of the goods,shall have the same effect as
if the person making the delivery or transfer were a merchantile agent in
possession of the goods or documents of title with the consent of the
owner.
11.Where a document of title to goods has been lawfully transferred
to a person as a buyer or owner of the goods,and that person transfers
the document to a person who takes the document in good faith and for
valuable consideration,the last-mentioned transfer shall have the same
effect for defeating any vendor's lien or right of stoppage in transitu as
the transfer of a bill of lading has for defeating the right of stoppage in
transitu.
Supplemental Provisions.
12.For the purposes of this Ordinance,the transfer of a document
may be by indorsement,or,where the document is by custom or by its
express terms transferable by delivery or makes the goods deliverable to
the bearermthen by delivery.
13.-(1.)Nothing in this Oridnance shall authorize an agent to exceed
or depart from his authority as between himself and his principal,or
exempt him from any liability,civil or criminal ,for so doing.
(2.)Nothing in this Ordinance shall prevent the owner of goods from
recovering the goods from an agent or his trustee in bankruptcy at any
time before the sale or pledge thereof,or shall prevent the pwner of goods
pledged by an agent from having the right ot redeem the goods at any
time before the sale thereof,on satisfying the claim for which the goods
were pledged,and paying to the agent,if by him required,any money
in respect of which the agent would by law be entitled to retain the
goods,or the documents of title thereto,or any of them,by way of lien
as against the owner,or from recovering from any person with whom the
goods have been pledged any balance of money remaining in his hands
as the produce of the sale of the goods after deducting the amount of
his lien,
(3.)Nothing in this Ordinance shall prevent the pwner of goods sold
by an agent from recovering from the buyer the price agreed to be paid
for the same,or any part of that price,subject to any right of set-off on
the part of the buyer against the agent.
14.The provisions of this Ordinance shall be construed in amplifica-
tion and not in derogation of the powers exerisable by an agent
independently of this Ordinance.
A.D. 1896. Ordinance No. 6 of 1896. 52 & 53 Vict.c. 45.
Short title. Interpretation of terms. Powers of mercantile agent with respect to disposition of goods. Effect of pledge of documents of title. Pledge for antecedent debt. Rights acquired by exchange of goods or documents. Agreement through clerk, etc. Provisions as to consignor and consignee. Disposition by seller remaining in possession. Disposition by buyer obtaining possession. Effect of transfer of document of title on vendor's lien or right of stoppage in transitu. Mode of transferring document. Saving for rights of true owner. Saving for common law powers of agent.
Factors
AN ORDINANCE to consolidate and amend the Law relating
to Factors.
[1st July,1896.]
BE it enacted by the Governor of Hongkong,with the advice and
consent of the Legislative Council thereof,as follows:-
Preliminary Provisions.
1.This Ordinance may be cited as the Factors Ordinance,1896. 3.For the purposes of this Ordinance-
'Merchantile agent' means a merchantile agent having ,in the
customary course of his business as such agent,authority either to
sell goods,or to consign goods for the purpose of sale,or to buy
goods,or to raise money on the security of goods:
A person shall be deemed to be in possession of goods or of the
documents of title to goods,where the goods or documents are in
his actual custody or are held by any other person subject to his
control,or for him,or on his behalf:
'Goods' include wares and merchandise:
'Document of title' includes any bill of lading,dock warrant,
warehouse-keeper's certificate,and warrant or order for the delivery
of goods,and any other document used in the ordinary course of
busines as proof of the possession or control of goods,or authoriz-
ing or purporting to authorize,either by indorsement or by delivery,
the possessor of the document to transfer or receive goods thereby
represented:
'Pledge' includes any contract pledging,or giving a lien or
security on,goods,whether in consideration of an original advamce,
or of any further or continuing advance,or of any pecuniary liability:
'Person' includes any body of persons corporate or unincorporate.
Dispositions by Merchantile Agents.
3.-(1.)Where a merchantile 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 merchantile 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 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 merchantile agent has,with the consent of the owner,
been in possession of goods or of the documents of title t 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 merchantile 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 hereby
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.
4.A pledge of the documents of title to goods shall be deemed to be
a pledge of the goods.
5.Where a merchantile agent pledges goods as security for a debt or
liability due from the pledgor to the pledgee before the time of the
pledge,the pledgee shall acquire no further right to the goods than
could have been enforced by the pledgor at the time of the pledge.
6.The consideration necessary for the validity of a sale,pledge,or
other disposition of goods,in pursuance of this Ordinance,may be either
a payment in cash,or the delivery or transfer of other goods,or of a
document of title ot goods,or fo a negotiable security,or any other valu-
able consideration;but where goods are pledged by a merchantile agent
in consideration of the delivery or transfer of other goods,or of a docu-
ment of title to goods,or of a negotiable security,the pledgee shall acquire
no right or interest in the goods so pledged in excess of the value of the
goods,document,or security when so delivered or transferred in
exchange.
7.For the purposes of this Ordinance,an agreement made with a
merchantile agent through a clerk or other perosn authorized in the
ordinary course of business to make contracts of sale or pledge on his
behalf shall be deemed to be an agreement with the agent.
8.-(1.)Where the owner of goods has given possession of the goods
to another person for the purpose of consignment or sale,or has shipped
the goods inthe name of another person,and the consignee of the goods
has not had notice that such person is not the owner of the goods,the
consignee shall,in respect of advances made to or for the use of such
person,have the same lien on the goods as if such person were the owner
of the goods,and may transfer any such lien to another perosn.
(2.)Nothing in this section shall limit or affect the validity of any
sale,pledge,or disposition by a merchantile agent.
Dispositions by Sellers and Buyers of Goods.
9.Where a person,having sold goods,continues,or is,in possession
of the goods or of the documents of title to the goods,the delivery or
transfer by that person,or by a merchantile agent acting for him,of the
goods or documents of title under any sale,pledge,or other disposition
therreof,or under any agreement for sale,pledge,or other disposition thereof,to any person receiving the same in good faith and without
notice of the previous sale,shall have the same effect as if the perosn
asking the delivery or transfer were expressly authorized by the owner
of the goods to make the same.
10.Where a person,having bought or agreed to buy goods,obtains,
with the consent of the seller,possession of the goods or the documents
of title to the goods,the delivery or transfer,by that person or bya
merchantile agent acting for him,of the goods or documents of title,
under any sale,pledge,or other disposition thereof,or uynder any agree-
ment for sale,pledge,or other disposition thereof,to any person receiving
the same in good faith and without notice of any lien or other right of
the original seller in respect of the goods,shall have the same effect as
if the person making the delivery or transfer were a merchantile agent in
possession of the goods or documents of title with the consent of the
owner.
11.Where a document of title to goods has been lawfully transferred
to a person as a buyer or owner of the goods,and that person transfers
the document to a person who takes the document in good faith and for
valuable consideration,the last-mentioned transfer shall have the same
effect for defeating any vendor's lien or right of stoppage in transitu as
the transfer of a bill of lading has for defeating the right of stoppage in
transitu.
Supplemental Provisions.
12.For the purposes of this Ordinance,the transfer of a document
may be by indorsement,or,where the document is by custom or by its
express terms transferable by delivery or makes the goods deliverable to
the bearermthen by delivery.
13.-(1.)Nothing in this Oridnance shall authorize an agent to exceed
or depart from his authority as between himself and his principal,or
exempt him from any liability,civil or criminal ,for so doing.
(2.)Nothing in this Ordinance shall prevent the owner of goods from
recovering the goods from an agent or his trustee in bankruptcy at any
time before the sale or pledge thereof,or shall prevent the pwner of goods
pledged by an agent from having the right ot redeem the goods at any
time before the sale thereof,on satisfying the claim for which the goods
were pledged,and paying to the agent,if by him required,any money
in respect of which the agent would by law be entitled to retain the
goods,or the documents of title thereto,or any of them,by way of lien
as against the owner,or from recovering from any person with whom the
goods have been pledged any balance of money remaining in his hands
as the produce of the sale of the goods after deducting the amount of
his lien,
(3.)Nothing in this Ordinance shall prevent the pwner of goods sold
by an agent from recovering from the buyer the price agreed to be paid
for the same,or any part of that price,subject to any right of set-off on
the part of the buyer against the agent.
14.The provisions of this Ordinance shall be construed in amplifica-
tion and not in derogation of the powers exerisable by an agent
independently of this Ordinance.
A.D. 1896. Ordinance No. 6 of 1896. 52 & 53 Vict.c. 45.
Short title. Interpretation of terms. Powers of mercantile agent with respect to disposition of goods. Effect of pledge of documents of title. Pledge for antecedent debt. Rights acquired by exchange of goods or documents. Agreement through clerk, etc. Provisions as to consignor and consignee. Disposition by seller remaining in possession. Disposition by buyer obtaining possession. Effect of transfer of document of title on vendor's lien or right of stoppage in transitu. Mode of transferring document. Saving for rights of true owner. Saving for common law powers of agent.
Abstract
A.D. 1896. Ordinance No. 6 of 1896. 52 & 53 Vict.c. 45.
Short title. Interpretation of terms. Powers of mercantile agent with respect to disposition of goods. Effect of pledge of documents of title. Pledge for antecedent debt. Rights acquired by exchange of goods or documents. Agreement through clerk, etc. Provisions as to consignor and consignee. Disposition by seller remaining in possession. Disposition by buyer obtaining possession. Effect of transfer of document of title on vendor's lien or right of stoppage in transitu. Mode of transferring document. Saving for rights of true owner. Saving for common law powers of agent.
Short title. Interpretation of terms. Powers of mercantile agent with respect to disposition of goods. Effect of pledge of documents of title. Pledge for antecedent debt. Rights acquired by exchange of goods or documents. Agreement through clerk, etc. Provisions as to consignor and consignee. Disposition by seller remaining in possession. Disposition by buyer obtaining possession. Effect of transfer of document of title on vendor's lien or right of stoppage in transitu. Mode of transferring document. Saving for rights of true owner. Saving for common law powers of agent.
Identifier
https://oelawhk.lib.hku.hk/items/show/690
Edition
1901
Volume
v2
Subsequent Cap No.
48
Cap / Ordinance No.
No. 3 of 1896
Number of Pages
5
Files
Collection
Historical Laws of Hong Kong Online
Citation
“FACTORS ORDINANCE, 1896,” Historical Laws of Hong Kong Online, accessed November 21, 2024, https://oelawhk.lib.hku.hk/items/show/690.
