Consideration necessary for validity of sale etc and rights acquired by exchange of goods or documents
7 Consideration necessary for validity of sale etc and rights acquired by exchange of goods or documents
The consideration necessary for the validity of a sale, pledge, or other disposition, of goods, in pursuance of sections 4 to 12 of this Act, may be—
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.
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.
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