Davey v Paine Brothers (Motors) Limited - [1954] NZLR 1122

Agent — Mercantile Agent — Motor-car left with Agent to sell — Agent informing Owner Car sold and sending him Cheque for Proceeds — Cheque dishonoured — Car actually exchanged by Agent for Another Car — Agent a "mercantile agent" — Sale by Way of Exchange, and not for Cash — Exchange a Recognized Method of Disposition by Mercantile Agent — Agent in Possession of Car with Owner's Consent and Sale made in Ordinary Course of Business as Mercantile Agent — Car purchased in Good Faith without Notice of Agent's Lack of Authority — Disposition of Car Valid — Mercantile Law Act, 1908, ss 2, 6 — Sale of Goods Act, 1908, ss 23, 26.

Sale of Goods — Agent selling Principal's Car without Authority — Agent convicted of Fraudulent Omission to Account to Principal for Payment received for Car — Car not revesting in Principal, as Conviction not for Theft — Sale effected by way of Exchange and not for Cash — Principal not deemed to have represented Agent's Authority to receive Price otherwise than in Cash — Sale of Goods Act, 1908, ss 23, 26.