{"id":"a-1962-4","name":"Mercantile Law Act 1962","slug":"mercantile-law-act-1962","collection":"act","jurisdiction":"act","status":"in_force","isInForce":true,"actNumber":"4 of 1962","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":23940,"registerId":"act-a-1962-4-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Mercantile Law Act 1962","content":"Australian Capital Territory\nMercantile Law Act 1962\nA1962-4\nRepublication No 7\nEffective: 30 January 2012\nRepublication date: 30 January 2012\nLast amendment made by A2010-15\nAuthorised by the ACT Parliamentary Counsel\n\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\nAbout this republication\nThe republished law\nThis is a republication of the Mercantile Law Act 1962 (including any amendment made under\nthe Legislation Act 2001, part 11.3 (Editorial changes)) as in force on 30 January 2012. It also\nincludes any commencement, amendment, repeal or expiry affecting this republished law to 30\nJanuary 2012.\nThe legislation history and amendment history of the republished law are set out in endnotes 3\nand 4.\nKinds of republications\nThe Parliamentary Counsel’s Office prepares 2 kinds of republications of ACT laws (see the\nACT legislation register at www.legislation.act.gov.au):\n authorised republications to which the Legislation Act 2001 applies\n unauthorised republications.\nThe status of this republication appears on the bottom of each page.\nEditorial changes\nThe Legislation Act 2001, part 11.3 authorises the Parliamentary Counsel to make editorial\namendments and other changes of a formal nature when preparing a law for republication.\nEditorial changes do not change the effect of the law, but have effect as if they had been made\nby an Act commencing on the republication date (see Legislation Act 2001, s 115 and s 117).\nThe changes are made if the Parliamentary Counsel considers they are desirable to bring the law\ninto line, or more closely into line, with current legislative drafting practice.\nThis republication includes amendments made under part 11.3 (see endnote 1).\nUncommenced provisions and amendments\nIf a provision of the republished law has not commenced, the symbol U appears immediately\nbefore the provision heading. Any uncommenced amendments that affect this republished law\nare accessible on the ACT legislation register (www.legislation.act.gov.au). For more\ninformation, see the home page for this law on the register.\nModifications\nIf a provision of the republished law is affected by a current modification, the symbol M\nappears immediately before the provision heading. The text of the modifying provision appears\nin the endnotes. For the legal status of modifications, see the Legislation Act 2001, section 95.\nPenalties\nAt the republication date, the value of a penalty unit for an offence against this law is $110 for\nan individual and $550 for a corporation (see Legislation Act 2001, s 133).\n\nR7\n30/01/12\nMercantile Law Act 1962\nEffective: 30/01/12\ncontents 1\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\nAustralian Capital Territory\nMercantile Law Act 1962\nContents\nPage\nPart 1 Preliminary\n1 Name of Act 2\n2 Dictionary 2\n3 Notes 2\n3A Offences against Act—application of Criminal Code etc 3\nPart 2 Mercantile agents\n4 Definitions for pt 2 4\n5 Consignor and consignee 4\n6 Powers of mercantile agent 5\n7 Presumptions 5\n8 Pledge by way of exchange 6\n9 Pledge for existing debt 7\n10 Saving for rights of true owner 7\n11 Saving for common law powers of mercantile agents 8\n\nContents\nPage\ncontents 2 Mercantile Law Act 1962\nEffective: 30/01/12\nR7\n30/01/12\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\nPart 3 Guarantors and sureties\n12 Consideration for guarantee 9\n13 Surety entitled to stand in place of creditor whose debt etc surety has\ndischarged 9\nPart 4 Usury\n14 Maximum rate of interest 11\nPart 5 Written memoranda\n15 Debts and contracts of children 12\n16 Representations of character etc 12\nPart 6 Warehouse persons’ liens\n17 Definitions for pt 6 13\n18 Warehouse person to have lien on goods 13\n19 Charges covered by lien 13\n20 Notice by warehouse person 14\n21 Notice by person depositing goods 15\n22 Power to sell goods 15\n28 Service of notice by warehouse person 17\n29 Notice provisions—substantial compliance 17\n31 Rights not to be affected 18\n32 Sales otherwise prohibited are not authorised by pt 6 18\nDictionary 19\nEndnotes\n1 About the endnotes 20\n2 Abbreviation key 20\n3 Legislation history 21\n\nContents\nPage\nR7\n30/01/12\nMercantile Law Act 1962\nEffective: 30/01/12\ncontents 3\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\n4 Amendment history 24\n5 Earlier republications 27\n\n\n\nR7\n30/01/12\nMercantile Law Act 1962\nEffective: 30/01/12\npage 1\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\nAustralian Capital Territory\nMercantile Law Act 1962\nAn Act relating to mercantile agents, guarantors and sureties, usury, written\nmemoranda and warehouse persons’ liens\n\nPart 1 Preliminary\nSection 1\npage 2 Mercantile Law Act 1962\nEffective: 30/01/12\nR7\n30/01/12\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\nPart 1 Preliminary\n1 Name of Act\nThis Act is the Mercantile Law Act 1962.\n2 Dictionary\nThe dictionary at the end of this Act is part of this Act.\nNote 1 The dictionary at the end of this Act defines certain terms used in this\nAct, and includes references (signpost definitions) to other terms\ndefined elsewhere in this Act.\nFor example, the signpost definition ‘mercantile agent, for part 2\n(Mercantile agents)—see section 4.’ means that the term ‘mercantile\nagent’ is defined in that section for part 2.\nNote 2 A definition in the dictionary (including a signpost definition) applies to\nthe entire Act unless the definition, or another provision of the Act,\nprovides otherwise or the contrary intention otherwise appears (see\nLegislation Act, s 155 and s 156 (1)).\n3 Notes\nA note included in this Act is explanatory and is not part of this Act.\nNote See the Legislation Act, s 127 (1), (4) and (5) for the legal status of\nnotes.\n\nPreliminary Part 1\nSection 3A\nR7\n30/01/12\nMercantile Law Act 1962\nEffective: 30/01/12\npage 3\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\n3A Offences against Act—application of Criminal Code etc\nOther legislation applies in relation to offences against this Act.\nNote 1 Criminal Code\nThe Criminal Code, ch 2 applies to all offences against this Act (see\nCode, pt 2.1).\nThe chapter sets out the general principles of criminal responsibility\n(including burdens of proof and general defences), and defines terms\nused for offences to which the Code applies (eg conduct, intention,\nrecklessness and strict liability).\nNote 2 Penalty units\nThe Legislation Act, s 133 deals with the meaning of offence penalties\nthat are expressed in penalty units.\n\nPart 2 Mercantile agents\nSection 4\npage 4 Mercantile Law Act 1962\nEffective: 30/01/12\nR7\n30/01/12\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\nPart 2 Mercantile agents\n4 Definitions for pt 2\nIn this part:\nNote A definition applies except so far as the contrary intention appears (see\nLegislation Act 2001, s 155).\nadvance includes a payment of money and the delivery of a bill of\nexchange or other negotiable security.\ndocument of title—see the Sale of Goods Act 1954, dictionary.\nmercantile agent—see the Sale of Goods Act 1954, dictionary.\npledge includes a contract pledging or giving a lien or security on\ngoods, whether in consideration of an original advance, a further or\ncontinuing advance or a financial liability.\n5 Consignor and consignee\n(1) Where—\n(a) the owner of goods—\n(i) has given possession of the goods to a person for the\npurpose of consignment or sale and the person has\nconsigned the goods in his or her own name; or\n(ii) has consigned the goods in the name of a person; and\n(b) the consignee of the goods has not had notice that that person\nis not the owner of the goods;\nthe consignee has, in respect of advances made to or for the use of\nthat person, the same lien on the goods as if that person were the\nowner of the goods.\n(2) A consignee who has a lien on goods by virtue of subsection (1)\nmay transfer the lien to any person.\n\nMercantile agents Part 2\nSection 6\nR7\n30/01/12\nMercantile Law Act 1962\nEffective: 30/01/12\npage 5\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\n(3) Nothing in this section limits or affects the validity of a sale, pledge\nor disposition by a mercantile agent.\n6 Powers of mercantile agent\nIf a mercantile agent is entrusted as a mercantile agent with the\npossession of goods or documents of title to goods—\n(a) a sale, pledge or other disposition of the goods made by the\nmercantile agent in the ordinary course of business of a\nmercantile agent to a person acting honestly, and without\nnotice that the mercantile agent does not have authority to\nmake the disposition, is, subject to this part, as valid as if the\nmercantile agent were expressly authorised by the owner of the\ngoods to make the disposition; and\n(b) a sale, pledge or other disposition of the goods to a person that\nwould have been valid if the entrusting had continued is valid,\ndespite the ending of the entrusting, unless the person had, at\nthe time of the disposition, notice of the ending of the\nentrusting.\n7 Presumptions\n(1) For this part—\n(a) a mercantile agent in possession of goods or of the documents\nof title to goods is taken to have been entrusted with the goods\nor documents as a mercantile agent until the contrary is shown;\nand\n(b) a mercantile agent entrusted as a mercantile agent with, and\npossessed of, the documents of title to goods, whether derived\nimmediately from the owner of the goods or obtained by\nreason of the agent having been entrusted with the possession\nof the goods or of any other document of title to the goods, is\ntaken to be entrusted with the possession of the goods; and\n\nPart 2 Mercantile agents\nSection 8\npage 6 Mercantile Law Act 1962\nEffective: 30/01/12\nR7\n30/01/12\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\n(c) a mercantile agent is taken to be possessed of goods or\ndocuments of title to goods whether the goods or documents,\nas the case may be, are in the actual custody or control of the\nmercantile agent or are held by another person subject to the\ncontrol of, or for or on behalf of, the mercantile agent; and\n(d) a contract, whether made directly with a mercantile agent or\nwith a clerk, or other person, on behalf of a mercantile agent, is\ntaken to be a contract with the mercantile agent; and\n(e) a pledge of the documents of title to goods is taken to be a\npledge of the goods.\n(2) If—\n(a) an advance is made honestly to a mercantile agent entrusted as\na mercantile agent with the possession of goods, or documents\nof title to goods, relying on a written agreement to consign,\ndeposit, transfer or deliver the goods or documents; and\n(b) the goods or documents are received by the person making the\nadvance without notice that the mercantile agent was not\nauthorised to make the pledge;\nthe advance is taken, for this part, to be an advance on the security\nof the goods or documents even though the goods or documents are\nnot received by the person making the advance until after the\nadvance is made.\n8 Pledge by way of exchange\n(1) This section applies if—\n(a) a mercantile agent pledges goods in consideration of the\ndelivery or transfer of—\n(i) other goods; or\n(ii) documents of title to other goods; or\n(iii) negotiable securities; and\n\nMercantile agents Part 2\nSection 9\nR7\n30/01/12\nMercantile Law Act 1962\nEffective: 30/01/12\npage 7\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\n(b) because of the pledge, the person (the pledgee) who delivers or\ntransfers the goods, documents or securities obtains a valid and\navailable lien and security in relation to a previous advance\nunder an agreement made with the mercantile agent; and\n(c) the pledgee acts honestly and without notice that the mercantile\nagent did not have authority to make the pledge.\n(2) The pledge is taken to be in consideration of an advance under this\npart as if there had been an actual advance of money, but the\npledgee does not acquire any right or interest in excess of the value\nof the goods, documents or negotiable securities when they are\ndelivered or transferred.\n9 Pledge for existing debt\nIf a mercantile agent pledges goods as security for a debt or liability\nthat the mercantile agent owes the pledgee before the pledge is\nmade, the pledgee does not acquire any further right to the goods\nthan could have been enforced by the mercantile agent at the time of\nthe pledge.\n10 Saving for rights of true owner\nNothing in this part—\n(a) authorises a mercantile agent to exceed or depart from his or\nher authority as between himself or herself and his or her\nprincipal or exempts him or her from any liability, civil or\ncriminal, for so doing; or\n(b) prevents the owner of goods from recovering the goods from a\nmercantile agent or his or her trustee in bankruptcy at any time\nbefore the sale or pledge of the goods; or\n(c) prevents the owner of goods sold by a mercantile agent from\nrecovering from the buyer the price agreed to be paid for the\ngoods, or any part of that price, subject to any right of set-off\non the part of the buyer against the agent; or\n\nPart 2 Mercantile agents\nSection 11\npage 8 Mercantile Law Act 1962\nEffective: 30/01/12\nR7\n30/01/12\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\n(d) prevents the owner of goods pledged by a mercantile agent—\n(i) from having the right to redeem the goods at any time\nbefore the sale of the goods on satisfying the claim for\nwhich the goods were pledged and paying to the\nmercantile agent, if by him or her required, any money in\nrespect of which the mercantile agent would by law be\nentitled to retain the goods or the documents of title to the\ngoods, or any of them, by way of lien as against the\nowner; or\n(ii) from recovering from any person with whom the goods\nhave been pledged any balance of money remaining in his\nor her hands as the produce of the sale of the goods after\ndeducting the amount of the lien.\n11 Saving for common law powers of mercantile agents\nThe provisions of this part enlarge and do not diminish the functions\na mercantile agent may exercise.\n\nGuarantors and sureties Part 3\nSection 12\nR7\n30/01/12\nMercantile Law Act 1962\nEffective: 30/01/12\npage 9\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\nPart 3 Guarantors and sureties\n12 Consideration for guarantee\nA special promise by a person (the guarantor) to answer for the\ndebt, liability or failure of someone else is not invalid only because\nthe consideration for the promise is not evidenced in writing if the\npromise is in writing signed by or on behalf of the guarantor.\n13 Surety entitled to stand in place of creditor whose debt\netc surety has discharged\n(1) Subject to this section, a person who, being surety for the debt or\nduty of another or being liable with another for a debt or duty, pays\nthe debt or performs the duty, is entitled—\n(a) to have assigned to him or her or to a trustee for him or her\nevery judgment, specialty or other security held by the creditor\nin respect of the debt or duty, whether the judgment, specialty\nor other security is, or is not, deemed at law to have been\nsatisfied by the payment of the debt or the performance of the\nduty; and\n(b) to stand in the place of the creditor and to use all the remedies,\nand, if need be and upon proper indemnity, to use the name, of\nthe creditor in any action or other proceeding at law or in\nequity in order to obtain from the principal debtor or any co-\nsurety, co-contractor or co-debtor, as the case may be,\nindemnification for the advances made or loss sustained by the\nfirstmentioned person.\n(2) The payment of a debt, or the performance of a duty, in the\ncircumstances referred to in subsection (1) does not prevent the\nbringing of any action or other proceeding by virtue of that\nsubsection.\n\nPart 3 Guarantors and sureties\nSection 13\npage 10 Mercantile Law Act 1962\nEffective: 30/01/12\nR7\n30/01/12\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\n(3) A co-surety, co-contractor or co-debtor is not entitled, by virtue of\nsubsection (1), to recover from another co-surety, co-contractor or\nco-debtor more than the just proportion for which, as between the\nparties themselves, the other co-surety, co-contractor or co-debtor is\njustly liable.\n\nUsury Part 4\nSection 14\nR7\n30/01/12\nMercantile Law Act 1962\nEffective: 30/01/12\npage 11\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\nPart 4 Usury\n14 Maximum rate of interest\nWhere the rate of interest for a loan of money or upon any other\ncontract has not been agreed upon by the parties, the rate of interest\nfor that loan or upon that contract that may be recovered in a\nproceeding must not exceed 8% per annum.\n\nPart 5 Written memoranda\nSection 15\npage 12 Mercantile Law Act 1962\nEffective: 30/01/12\nR7\n30/01/12\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\nPart 5 Written memoranda\n15 Debts and contracts of children\n(1) This section applies to—\n(a) a promise made by a person after becoming an adult to pay a\ndebt contracted by the person when the person was a child; or\n(b) the ratification by a person after becoming an adult of a\npromise or simple contract made by the person when the\nperson was a child.\n(2) The promise or ratification is not enforceable by a proceeding\nagainst the person unless it was made in writing signed by the\nperson.\n16 Representations of character etc\n(1) This section applies to a representation or assurance made by a\nperson if it is—\n(a) about the character, conduct or credit, ability, trade or dealings\nof someone else; and\n(b) made so the other person can obtain credit, money or goods by\nrelying on it.\n(2) The representation or assurance is not enforceable by a proceeding\nagainst the person who made it unless it was made in writing signed\nby the person.\n\nWarehouse persons’ liens Part 6\nSection 17\nR7\n30/01/12\nMercantile Law Act 1962\nEffective: 30/01/12\npage 13\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\nPart 6 Warehouse persons’ liens\n17 Definitions for pt 6\nIn this part:\nNote A definition applies except so far as the contrary intention appears (see\nLegislation Act 2001, s 155).\nlien means a lien under this part.\nwarehouse person means a person lawfully engaged in the business\nof storing goods as bailee for hire or reward.\n18 Warehouse person to have lien on goods\nSubject to this part, a warehouse person has a lien on goods\ndeposited with him or her for storage.\n19 Charges covered by lien\n(1) Such a lien shall be for the amount of—\n(a) all lawful charges of the warehouse person for storage and\npreservation of the goods; and\n(b) all lawful claims of the warehouse person for insurance,\ntransportation, labour, weighing, packing, coopering and other\nexpenses in relation to the goods; and\n(c) where default is made in satisfying the lien charged on the\ngoods under paragraphs (a) and (b)—all reasonable charges of\nthe warehouse person for notice and advertisement of an\nintended sale of the goods and, if the goods are sold, for the\nsale of the goods.\n\nPart 6 Warehouse persons’ liens\nSection 20\npage 14 Mercantile Law Act 1962\nEffective: 30/01/12\nR7\n30/01/12\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\n(2) If the charges mentioned in subsection (1) (c) are incurred in\nrelation to 2 or more items of goods, the charges in relation to any of\nthe items is the amount worked out as follows:\nTSC\n(3) In subsection (2):\nISP means the sale price of the item.\nTSC means total charges for selling all the goods.\nTSP means the sale price of all the goods.\n20 Notice by warehouse person\n(1) Subject to this part, if a warehouse person fails, within the period of\n3 months after the date of the deposit of goods, to give notice, in\naccordance with subsections (2) and (3), of the lien on the goods,\nthe lien on the goods is void as against the persons to whom he or\nshe failed to give notice.\n(2) Notice of a lien on goods shall be given to—\n(a) any person who has before the expiration of the period of\n2 months after the date of the deposit of the goods served upon\nthe warehouse person a notice of his or her claim to be the\nowner of the goods or an interest in the goods; and\n(b) any person who has a security interest registered under the\nPersonal Property Securities Act 2009 (Cwlth) in relation to\nthe goods; and\n(c) any other person (not being the person who deposited the\ngoods) of whose interest in the goods the warehouse person at\nany time before the expiration of the period of 2 months after\nthe date of the deposit of the goods has knowledge.\nTSP\nISP\n\n\nWarehouse persons’ liens Part 6\nSection 21\nR7\n30/01/12\nMercantile Law Act 1962\nEffective: 30/01/12\npage 15\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\n(3) Notice of a lien on goods—\n(a) shall be in writing; and\n(b) shall contain—\n(i) a brief description of the goods; and\n(ii) a statement showing the situation of the warehouse where\nthe goods are stored, the date of their deposit with the\nwarehouse person and the name of the person by whom\nthey were deposited; and\n(iii) a statement that a lien under this part is claimed by the\nwarehouse person in respect of the goods.\n21 Notice by person depositing goods\n(1) A person commits an offence if—\n(a) the person deposits goods with a warehouse person for storage;\nand\n(b) the person fails to tell the warehouse person in writing the\nname and, if the person knows it, the address of everyone who\nthe person knows has an interest in the goods.\nMaximum penalty: 5 penalty units.\n(2) An offence against this section is a strict liability offence.\n22 Power to sell goods\n(1) Subject to this part, a warehouse person may, in addition to any\nother remedy provided by law for the enforcement of liens or for the\nrecovery of warehouse persons’ charges, issue a notice of intention\nto sell the goods.\n\nPart 6 Warehouse persons’ liens\nSection 22\npage 16 Mercantile Law Act 1962\nEffective: 30/01/12\nR7\n30/01/12\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\n(2) Notice of intention to sell goods under this section shall be given by\nthe warehouse person to—\n(a) the person liable as debtor for the charges for which the lien on\nthe goods exists; and\n(b) any person who has served upon the warehouse person a notice\nof his or her claim to be the owner of the goods or an interest\nin the goods; and\n(c) the grantee or transferee of a bill of sale relating to the goods,\nbeing a person to whom notice of the lien has been given under\nsection 20, unless the bill of sale has become null and void or a\ndischarge has been registered in respect of it; and\n(d) any other person of whose interest in the goods the warehouse\nperson has knowledge.\n(3) Notice of intention to sell goods under this section—\n(a) shall be in writing; and\n(b) shall contain—\n(i) a brief description of the goods; and\n(ii) a statement showing the situation of the warehouse where\nthe goods are stored, the date of their deposit with the\nwarehouse person and the name of the person by whom\nthey were deposited; and\n(iii) an itemised statement of the warehouse person’s charges\nshowing the sum due at the date of the notice; and\n(iv) a demand that the amount of the charges as stated in the\nnotice and such further charges as may accrue shall be\npaid on or before a day specified in the notice, being a\nday not less than 1 month after the delivery of the notice,\nif it is personally delivered, or after the time when the\nnotice should reach its destination according to the due\ncourse of post, if it is sent by post; and\n\nWarehouse persons’ liens Part 6\nSection 28\nR7\n30/01/12\nMercantile Law Act 1962\nEffective: 30/01/12\npage 17\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\n(v) a statement that unless the charges are paid within the\ntime mentioned the goods will be sold by a method, and\nat a time and place, specified in the notice.\n(5) This section applies only to cases in which some part of the charges\nin arrear are in respect of a period more than 12 months prior to the\ndate upon which notice of intention to sell is given.\n28 Service of notice by warehouse person\n(1) If a warehouse person does not know a person’s address, notice by\nthe warehouse person under this part may be given to the person by\n2 advertisements, at least 7 days apart, in a daily newspaper.\n(2) A notice given by advertisement in accordance with subsection (1)\nis, for this part, taken to have been given on the day the\n2nd advertisement is published.\n29 Notice provisions—substantial compliance\nWhere—\n(a) a notice of lien or a notice of intention to sell purports to have\nbeen given under this part but the provisions of this part with\nrespect to the giving of the notice have not been strictly\ncomplied with; and\n(b) a court before which a question respecting the notice is tried or\ninquired into considers that—\n(i) those provisions have been substantially complied with;\nor\n(ii) it would be inequitable that the lien or sale should be\ndeemed to be void by reason of the noncompliance;\nan objection to the sufficiency of the notice shall not be allowed to\nprevail so as to release or discharge the goods from the lien or\nvitiate the sale.\n\nPart 6 Warehouse persons’ liens\nSection 31\npage 18 Mercantile Law Act 1962\nEffective: 30/01/12\nR7\n30/01/12\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\n31 Rights not to be affected\nNothing in this part abrogates, limits or in any manner affects—\n(a) a lien, power of sale or other right (whether arising under\ncontract or by operation of law) that a warehouse person may\nhave apart from this part with respect to any goods stored by\nhim or her; or\n(b) the enforcement of such a lien or the exercise of such a power\nor right.\n32 Sales otherwise prohibited are not authorised by pt 6\n(1) This part does not authorise the sale by public auction by a\nwarehouse person of any goods if the sale by public auction of those\ngoods is prohibited by a law in force in the ACT.\n(2) This part does not authorise the sale by public auction by a\nwarehouse person of any goods if the sale by the warehouse person\nof those goods is prohibited by any other law in force in the ACT.\n\nDictionary\nR7\n30/01/12\nMercantile Law Act 1962\nEffective: 30/01/12\npage 19\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\nDictionary\n(see s 2)\nNote 1 The Legislation Act contains definitions and other provisions relevant to\nthis Act.\nNote 2 For example, the Legislation Act, dict, pt 1, defines the following terms:\n ACT\n daily newspaper\n document\n function\n under\n writing.\nadvance, for part 2 (Mercantile agents)—see section 4.\ndocument of title, for part 2 (Mercantile agents)—see section 4.\nlien, for part 6 (Warehouse persons’ liens)—see section 17.\nmercantile agent, for part 2 (Mercantile agents)—see section 4.\npledge, for part 2 (Mercantile agents)—see section 4.\nwarehouse person, for part 6 (Warehouse persons’ liens)—see\nsection 17.\n\nEndnotes\n1 About the endnotes\npage 20 Mercantile Law Act 1962\nEffective: 30/01/12\nR7\n30/01/12\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\nEndnotes\n1 About the endnotes\nAmending and modifying laws are annotated in the legislation history and the\namendment history. Current modifications are not included in the republished\nlaw but are set out in the endnotes.\nNot all editorial amendments made under the Legislation Act 2001, part 11.3 are\nannotated in the amendment history. Full details of any amendments can be\nobtained from the Parliamentary Counsel’s Office.\nUncommenced amending laws are not included in the republished law. The\ndetails of these laws are underlined in the legislation history. Uncommenced\nexpiries are underlined in the legislation history and amendment history.\nIf all the provisions of the law have been renumbered, a table of renumbered\nprovisions gives details of previous and current numbering.\nThe endnotes also include a table of earlier republications.\n2 Abbreviation key\nA = Act NI = Notifiable instrument\nAF = Approved form o = order\nam = amended om = omitted/repealed\namdt = amendment ord = ordinance\nAR = Assembly resolution orig = original\nch = chapter par = paragraph/subparagraph\nCN = Commencement notice pres = present\ndef = definition prev = previous\nDI = Disallowable instrument (prev...) = previously\ndict = dictionary pt = part\ndisallowed = disallowed by the Legislative r = rule/subrule\nAssembly reloc = relocated\ndiv = division renum = renumbered\nexp = expires/expired R[X] = Republication No\nGaz = gazette RI = reissue\nhdg = heading s = section/subsection\nIA = Interpretation Act 1967 sch = schedule\nins = inserted/added sdiv = subdivision\nLA = Legislation Act 2001 SL = Subordinate law\nLR = legislation register sub = substituted\nLRA = Legislation (Republication) Act 1996 underlining = whole or part not commenced\nmod = modified/modification or to be expired\n\nEndnotes\nLegislation history 3\nR7\n30/01/12\nMercantile Law Act 1962\nEffective: 30/01/12\npage 21\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\n3 Legislation history\nThis Act was originally a Commonwealth ordinance—the Mercantile Ordinance\n1962 No 4 (Cwlth).\nThe Australian Capital Territory (Self-Government) Act 1988 (Cwlth), s 34 (4)\nconverted most former Commonwealth ordinances in force in the ACT into ACT\nenactments. This allowed the ACT Legislative Assembly to amend and repeal the\nlaws. This Act was converted into an ACT enactment on 11 May 1989 (self-\ngovernment day).\nAs with most ordinances in force in the ACT, the name was changed from\nOrdinance to Act by the Self-Government (Citation of Laws) Act 1989 A1989-21,\ns 5 on 11 May 1989 (self-government day).\nBefore 11 May 1989, ordinances commenced on their notification day unless\notherwise stated (see Seat of Government (Administration) Act 1910 (Cwlth),\ns 12).\nLegislation before becoming Territory enactment\nMercantile Law Act 1962 A1962-4\nnotified 12 April 1962\ncommenced 12 April 1962\nas amended by\nOrdinances Revision (Decimal Currency) Ordinance 1966 Ord1966-19\nnotified 23 December 1966\ncommenced 23 December 1966\nOrdinances Revision Ordinance 1977 Ord1977-65\nnotified 22 December 1977\ncommenced 22 December 1977\nOrdinances Revision Ordinance 1978 Ord1978-46\nnotified 28 December 1978\ncommenced 28 December 1978\nMagistrates Court Ordinance 1985 Ord1985-67\nnotified 19 December 1985\ncommenced 1 February 1986 (Cwlth Gaz 1986 No G3)\n\nEndnotes\n3 Legislation history\npage 22 Mercantile Law Act 1962\nEffective: 30/01/12\nR7\n30/01/12\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\nLegislation after becoming Territory enactment\nMagistrates and Coroner’s Courts (Registrar) Act 1991 A1991-44 s 7,\nsch 1\nnotified 20 September 1991 (Gaz 1991 No S95)\ns 1, s 2 commenced 20 September 1991 ( s 2 (1))\ns 7 (2), sch 1 commenced 25 September 1991 (s 2 (2) and Gaz 1991\nNo S103)\nFinancial Management and Audit (Consequential and Transitional\nProvisions) Act 1996 A1996-26 sch pt 18\nnotified 1 July 1996 (Gaz 1996 No S130)\ncommenced 1 July 1996 (s 2)\nUncollected Goods (Consequential Provisions) Act 1996 A1996-87\ns 4\nnotified 20 December 1996 (Gaz 1996 No S328)\ns 1, s 2 commenced 20 December 1996 (s 2 (1))\ns 4 commenced 19 March 1998 (s 2 (2) and see Gaz 1998 No 1997\nNo S71)\nStatute Law Revision (Penalties) Act 1998 A1998-54 sch\nnotified 27 November 1998 (Gaz 1998 No S207)\ns 1, s 2 commenced 27 November 1998 (s 2 (1))\nsch commenced 9 December 1998 (s 2 (2) and Gaz 1998 No 49)\nLegislation (Consequential Amendments) Act 2001 A2001-44 pt 251\nnotified 26 July 2001 (Gaz 2001 No 30)\ns 1, s 2 commenced 26 July 2001 (IA s 10B)\npt 251 commenced 12 September 2001 (s 2 and see Gaz 2001\nNo S65)\nCriminal Code Harmonisation Act 2005 A2005-54 sch 1 pt 1.31\nnotified LR 27 October 2005\ns 1, s 2 commenced 27 October 2005 (LA s 75 (1))\nsch 1 pt 1.31 commenced 24 November 2005 (s 2)\nStatute Law Amendment Act 2005 (No 2) A2005-62 sch 3 pt 3.15\nnotified LR 21 December 2005\ns 1, s 2 commenced 21 December 2005 (LA s 75 (1))\nsch 3 pt 3.15 commenced 11 January 2006 (s 2 (1))\n\nEndnotes\nLegislation history 3\nR7\n30/01/12\nMercantile Law Act 1962\nEffective: 30/01/12\npage 23\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\nStatute Law Amendment Act 2009 A2009-20 sch 3 pt 3.54\nnotified LR 1 September 2009\ns 1, s 2 commenced 1 September 2009 (LA s 75 (1))\nsch 3 pt 3.54 commenced 22 September 2009 (s 2)\nPersonal Property Securities Act 2010 A2010-15 sch 3 pt 3.2\nnotified LR 1 April 2010\ns 1, s 2 commenced 1 April 2010 (LA s 75 (1))\nsch 3 pt 3.2 commenced 30 January 2012 (s 2 (2) (b))\n\nEndnotes\n4 Amendment history\npage 24 Mercantile Law Act 1962\nEffective: 30/01/12\nR7\n30/01/12\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\n4 Amendment history\nName of Act\ns 1 sub A2005-62 amdt 3.144\nDictionary\ns 2 om Ord1977-65\nins A2005-54 amdt 1.223\nom R5 LA\nins A2005-62 amdt 3.144\nNotes\ns 3 orig s 3 om A2001-44 amdt 1.2889\nprev s 3 renum as s 3A\nins A2005-62 amdt 3.144\nOffences against Act—application of Criminal Code etc\ns 3A (prev s 3) ins A2005-54 amdt 1.223\nrenum R5 LA\nDefinitions for pt 2\ns 4 def document of title sub A2005-62 amdt 3.145\ndef mercantile agent sub A2005-62 amdt 3.146\ndef pledge am A2005-62 amdt 3.147\nPowers of mercantile agent\ns 6 sub A2005-62 amdt 3.148\nPresumptions\ns 7 am A2005-62 amdts 3.149-3.151\nPledge by way of exchange\ns 8 sub A2005-62 amdt 3.152\nPledge for existing debt\ns 9 sub A2005-62 amdt 3.152\nSaving for common law powers of mercantile agents\ns 11 sub A2005-62 amdt 3.153\nConsideration for guarantee\ns 12 sub A2005-62 amdt 3.154\nMaximum rate of interest\ns 14 am Ord1966-19; A2005-62 amdt 3.155\nDebts and contracts of children\ns 15 sub A2005-62 amdt 3.156\nRepresentations of character etc\ns 16 sub A2005-62 amdt 3.157\n\nEndnotes\nAmendment history 4\nR7\n30/01/12\nMercantile Law Act 1962\nEffective: 30/01/12\npage 25\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\nDefinitions for pt 6\ns 17 am Ord1985-67\ndef court om A2005-62 amdt 3.158\nCharges covered by lien\ns 19 am A2005-62 amdt 3.159\nNotice by warehouse person\ns 20 am A2010-15 amdt 3.2\nNotice by person depositing goods\ns 21 am Ord1966-19; A1998-54 sch\nsub A2005-54 amdt 1.224\nPower to sell goods\ns 22 am A1996-87 s 4\nSale of goods to be advertised\ns 23 om A1996-87 s 4\nStay of proceedings to sell\ns 24 om A1996-87 s 4\nPayment of charges before sale\ns 25 am Ord1966-19\nom A1996-87 s 4\nNo action by reason of sale\ns 26 om A1996-87 s 4\nDisposition of proceeds of sale\ns 27 am Ord1966-19; A1991-44; A1996-26 sch pt 18\nom A1996-87 s 4\nService of notice by warehouse person\ns 28 sub A2005-62 amdt 3.160\nam A2009-20 amdt 3.143\nNotice provisions—substantial compliance\ns 29 am Ord1978-46\nApplication of pt 6\ns 30 om A2005-62 amdt 3.161\nLaws ceasing to be in force\nsch om A2001-44 amdt 1.2890\n\nEndnotes\n4 Amendment history\npage 26 Mercantile Law Act 1962\nEffective: 30/01/12\nR7\n30/01/12\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\nDictionary\ndict ins A2005-62 amdt 3.162\nam A2009-20 amdt 3.144\ndef advance ins A2005-62 amdt 3.162\ndef document of title ins A2005-62 amdt 3.162\ndef lien ins A2005-62 amdt 3.162\ndef mercantile agent ins A2005-62 amdt 3.162\ndef pledge ins A2005-62 amdt 3.162\ndef warehouse person ins A2005-62 amdt 3.162\n\nEndnotes\nEarlier republications 5\nR7\n30/01/12\nMercantile Law Act 1962\nEffective: 30/01/12\npage 27\nAuthorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au\n5 Earlier republications\nSome earlier republications were not numbered. The number in column 1 refers to\nthe publication order.\nSince 12 September 2001 every authorised republication has been published in\nelectronic pdf format on the ACT legislation register. A selection of authorised\nrepublications have also been published in printed format. These republications\nare marked with an asterisk (*) in column 1. Electronic and printed versions of an\nauthorised republication are identical.\nRepublication No Amendments to Republication date\n1 A1991-44 30 September 1991\n2 A1996-87 31 January 1998\n3 A2001-44 4 January 2002\n4 A2005-54 24 November 2005\n5 A2005-62 11 January 2006\n6 A2009-20 22 September 2009\n© Australian Capital Territory 2012","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":true,"description":"The Act’s long‑standing substantive core remains (protections for bona fide purchasers, guarantor subrogation, warehouse liens). However amendments have modernised and narrowed operational mechanics: application of the Criminal Code to offences (s3A), linkage to the Personal Property Securities Act for notice of registered security interests (s20(2)(b); see amendment history A2010-15), and removal or updating of earlier sale‑procedure provisions (see amendment history entries for A1996-87 and others). These changes altered how the rules operate in practice (notice, service, registration and enforcement), though not the principal categories of rights the Act creates."},"complexity_factors":["Cross‑references to other statutes and instruments (Sale of Goods Act definitions—s4; Criminal Code application—s3A; Personal Property Securities Act reference in s20(2)(b) and amendment history).","Mixture of statutory presumptions and evidentiary shifts that alter burdens of proof (presumptions about entrustment and possession—s7).","Detailed procedural notice, service and timing rules for warehouse liens and sales, including alternative service by advertisement (ss20–22, 28) and a substantial‑compliance safety valve (s29).","Interplay between statutory lien rights and preserved common‑law rights (s10, s11, s31) requiring reconciliation in practice and litigation.","Specific offences and strict liability element for depositors failing to disclose known interests (s21), adding criminal‑law overlay via s3A.","Amendments and omissions over time (see endnotes/amendment history) that change procedural mechanics while leaving core substantive protections, creating transitional interpretation issues."],"plain_english_summary":"This Act sets rules about mercantile agents, guarantors and sureties, maximum recoverable interest, written memoranda and warehouse persons’ liens. It protects people who deal in good faith with mercantile agents, allows a surety who pays to step into the creditor’s rights, caps recoverable interest where none is agreed (s14), and gives warehouse persons a lien and a prescribed notice-and-sale process (ss18–22, 29). Deposit‑makers must disclose known interests (s21); courts resolve substantial‑compliance disputes (s29)."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"issue_detection":{"absurdities":[],"contradictions":[]},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The Act remains a consolidated commercial statute covering the same five discrete areas (mercantile agents, guarantors, usury, written memoranda, and warehouse liens) as its original 1962 form. While amendments have modernised language (e.g., 2005-62) and updated references (e.g., 2010 amendment for Personal Property Securities Act), the substantive scope has not expanded beyond these original commercial law domains. The removal of sections 23-27 (sale procedures) by the Uncollected Goods Act 1996 actually narrowed Part 6 rather than expanding it."},"complexity_factors":["Multiple distinct subject areas (5 Parts) with minimal cross-connection, creating a 'omnibus' structure","Heavy reliance on external definitions—'mercantile agent' and 'document of title' are defined in the Sale of Goods Act 1954, not this Act","Nested conditional logic in Part 2 (sections 6-9) with multiple 'if/then' scenarios and 'without notice' requirements","Presumptions in section 7 that shift burdens of proof using 'taken to be' language","Detailed procedural requirements in Part 6 (sections 20, 22) with specific timeframes (3 months, 2 months, 1 month, 12 months) and content requirements for notices","Mathematical formula in section 19(2) for apportioning sale charges across multiple items","Cross-reference to Personal Property Securities Act 2009 (Cwlth) in section 20(2)(b) regarding security interests","Substantial compliance provision (section 29) creating judicial discretion rather than strict rules"],"plain_english_summary":"This Act sets commercial transaction rules in the ACT governing agents, guarantees, default interest, written promises about debts/credit, and warehouse liens. It affects businesses using agents, lenders and guarantors, warehouse operators, and anyone storing goods commercially.\n\nIt matters because it protects innocent third parties dealing with agents, makes written guarantees enforceable, provides a default interest rate, and gives warehouses clear, time‑limited rights to hold and sell goods to recover unpaid charges."}},"importantCases":[],"_links":{"self":"/api/acts/mercantile-law-act-1962","history":"/api/acts/mercantile-law-act-1962/history","analysis":"/api/acts/mercantile-law-act-1962/analysis","conflicts":"/api/acts/mercantile-law-act-1962/conflicts","importantCases":"/api/acts/mercantile-law-act-1962/important-cases","documents":"/api/acts/mercantile-law-act-1962/documents"}}