Maryland Code, COMMERCIAL LAW 11-803
Current as of: 2023 | Check for updates
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Terms Used In Maryland Code, COMMERCIAL LAW 11-803
- Contract: A legal written agreement that becomes binding when signed.
- Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
(a) Except as provided by subsection (b) of this section, a consignee entrusted with and in possession of a possessory document is considered the true owner of the goods described in the document for the purpose of any contract with a third person for:
(1) The sale or disposal of the goods; or
(2) The pledge or deposit of them as security for any money or negotiable instrument advanced or given on the faith of the possessory document.
(b) A contract, pledge, or deposit described in subsection (a) of this section is not valid if the third person has notice that the consignee is not the true owner of the goods.