Rights acquired by exchange of goods or documents. 5. The consideration necessary for the validity of a sale, pledge, or other disposition, of goods, in pursuance of this Act, may be either a payment in cash, or the delivery or transfer of other goods, or of a document of title to goods, or of a negotiable security, or any other valuable consideration; but where goods are pledged by a mercantile agent in consideration of the delivery or transfer of other goods, or of a document 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, documents, or security when so delivered or transferred in exchange. Agreements through clerks, &c. 6. For the purposes of this Act an agreement made with a mercantile agent through a clerk or other person authorised in the 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. Provisions as to consignors and consignees. 7.-(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 in the 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 person. (2.) Nothing in this section shall limit or affect the validity of any sale, pledge, or disposition, by a mercantile agent. Dispositions by Sellers and Buyers of Goods.-Disposition by seller remaining in possession. 8. 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 mercantile agent acting for him, of the goods or documents of title under any sale, pledge, or other disposition thereof, 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 person making the delivery or transfer were expressly authorised by the owner of the goods to make the same. Disposition by buyer obtaining possession. 9. 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 by a mercantile agent acting for him, of the goods or documents of title, under any sale, pledge, or other disposition thereof, or under any agreement 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 mercantile agent in possession of the goods or documents of title with the consent of the owner. Effect of transfer of documents on vendor's lien or right of stoppage in transitu. 10. 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.-Mode of transferring documents. 11. For the purposes of this Act, the transfer of a document may be by endorsement, or, where the document is by custom or by its express terms transferable by delivery, or makes the goods deliverable to the bearer, then by delivery. Saving for rights of true owner. 12. (1.) Nothing in this Act shall authorise 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 Act 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 owner of goods pledged by an agent from having the right to 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 Act shall prevent the owner 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. Saving for common law powers of agent. 13. The provisions of this Act shall be construed in amplification and not in derogation of the powers exerciseable by an agent independently of this Act. Repeal. 14. The enactments mentioned in the schedule to this Act are hereby repealed as from the commencement of this Act, but this repeal shall not affect any right acquired or liability incurred before the commencement of this Act under any enactment hereby repealed. Commencement. 15. This Act shall commence and come into operation on the first day of January one thousand eight hundred and ninety. Extent of Act. 16. This Act shall not extend to Scotland. Short Title. 17. This Act may be cited as the Factors Act, 1889. SCHEDULE. ENACTMENTS REPEALED. Session and Chapter. An Act for the better protection of The whole Act. An Act to alter and amend an Act The whole Act. An Act to amend the law relating The whole Act. 40 and 41 Vict. c. 39. An Act to amend the Factors Act. The whole Act. TRUST INVESTMENT ACT, 1889. THIS Act, dated 12th August, 1889, which is one of the most useful passed in the last Session of Parliament, clearly defines the stocks and securities in which trustees can legally invest trust funds, unless specially forbidden by the terms of the trust. It was preceded by the Order of the Supreme Court, dated 14th November, 1888 (see Journal of the Institute, December, 1888, p. 661), setting forth the securities in which cash under the control of or subject to the Order of the Court might be invested, and it will be noted that this Order has been considerably amplified, although, in one particular instance, its terms have been restricted. The restriction in question is that mentioned in clause 3, subsection (), which sanctions investments in debenture, rent-charge, guaranteed, or preference stock of any railway company in Great Britain or Ireland, incorporated by special Act of Parliament, provided that during each of the ten years last past, before the date of investment, the company shall have paid a dividend on its ordinary stock of not less than three per cent. per annum. In the Order of Court referred to there was a similar provision as to the payment of a dividend on ordinary stock, but the rate of such dividend was not insisted upon. The additions and amplifications introduced into the Act are notably the sanction of investments as under, viz. :— In any prospective issues of stock by the Secretary of State in Council of India, under the authority of Act of Parliament, and charged on the revenues of India. Člause 3, sub-section (d). In prospective issues of stock by the London County Council, or the Receiver for the Metropolitan Police District. Clause 3, sub-section (f). Also in the various descriptions of stock enumerated in clause 3, sub-sections (h), (j), (1), (m), and (n). Clause 4, sanctioning investment in stocks at a premium, although subsequently redeemable at par, will be highly appreciated by trustees, since there are now no stocks available for trustees, except the Government Two and Three-quarters and Two and a-Half per Cent. Annuities, which are purchasable at or under par. It will be noted that the securities in which trustees can legally invest trust funds are still confined to stocks, more or less directly under the control or sanction of the Government or Parliament of this kingdom-and that at present the stocks of Colonial Governments are not legally available for trustees. The leading colonies are naturally very desirous that their stocks should be sanctioned for the purposes named, especially as from their point of view the stocks in question have every element of security, and were they included in the authorised list, the area of legalised investments for trustees would be very sensibly increased; but it may be assumed that the absence of any control over these stocks by the Home Government, and, further, the great difficulty of discriminating between the colonial stocks themselves, still stand in the way of their recognition, although we may confidently expect that in due time the investments of trustees in the stocks of our more stable colonies will be legalised. CHAPTER 32. An Act to amend the Law relating to the Investment of Trust Funds. [12th August 1889.] BE it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows: Short title. 1. This Act may be cited as the Trust Investment Act, 1889. Extent of Act. 2. This Act shall not extend to Scotland. Authorised investments. 3. It shall be lawful for a trustee, unless expressly forbidden by the instrument (if any) creating the trust, to invest any trust funds in his hands in manner following, that is to say : (a.) In any of the Parliamentary Stocks or Public Funds or Government (b.) On Real or heritable Securities in Great Britain or Ireland: (e.) In any securities the interest of which is or shall be guaranteed by (f.) In Consolidated Stock created by the Metropolitan Board of Works, or which may at any time hereafter be created by the London County Council, or in Debenture Stock created by the Receiver for the Metropolitan Police District: (g.) In the Debenture or Rentcharge or Guaranteed or Preference Stock of any railway company in Great Britain or Ireland incorporated by special Act of Parliament, and having during each of the ten years |