LAWS2012 Lecture Notes - Lecture 6: Fide, Floating Charge, Bailment
Document Summary
Failure to repay means pledgee may sell the good, with surplus amounts returned to the owner: pledges do not need to be registered to be effective against liquidators. In dinmore meatworks pty ltd v kerr, abattoir holding carcasses for outstanding debt were only able to do so until debt for processing of the held carcasses were satisfied. Particular lien so cannot use to claim debt on previously shipped carcasses: under what conditions can a bailee/sub-bailee create a lien, the mere fact that the bailee has possession does not authorise the creation of a lien; Facts: al hired taxies to b, b garaged taxis with hind, hire purchase agreement stated b cannot create a lien, b falls behind in payments to hind, hind asserts lien over taxis. Hind knew that b had taxis under hire purchase agreement. Al also aware of b"s arrangements with hind. Held: al was bound by lien as there was ostensible authority.
