Agent’s lien

Updated: Aug 20, 2021

A lien is a right to retain the property of another against non-payment of a debt from that other.(lien, general – lien, particular) An agent can claim a lien on property belonging to his principal which is legally in the possession of the agent when the right arises, provided that there is no agreement with the principal that precludes such a lien. The lien may be general or particular. The rules are similar to those applicable to liens under other contracts. One special case that could apply relates to bankruptcy and the order and disposition clause, where the goods which are in the possession of the agent could be claimed by his trustee in bankruptcy as a general lien against all of the bankrupt agent’s property. This supposes that those goods appeared to belong to him and no agency could genuinely be assumed to exist with relation to the goods in the eyes of an innocent creditor of that agent.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
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James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.