120 AGENTS AND FACTORS. [ART. 2

us a security for a pre-existing debt or demand from such agent or
factor, knowing him to be such, but with such notice such person or
body corporate shall only acquire the right or interest therein which
was possessed by such agent or factor at the time of the deposit or
pledge; but if such person or body corporate shall have notice that such
agent or factor had no authority from his principal to pledge or deposit
the same or to part with the possession thereof, in such case such person
or body corporate shall acquire no right or interest therein.

1904, art. 2, sec. 7. 1888. art. 2. sec. 7. 1860, art. 3, sec. 7.
1S25. ch. 182, sec. 7.

7. In all cases where an agent or factor shall have made a contract
for the sale of goods, wares or merchandise, or shall have delivered the
same in pursuance of any such contract to any person or body corporate,
and shall, before the payment of the purchase money for the same, have
become insolvent, the principal or owner of the said goods may demand
and receive the said purchase money from the person or body corporate
indebted therefor, and such person or body corporate shall have no
benefit of set-oft in any action which may be brought for the recovery
of the same, unless such claim or set-off shall have arisen in a course
of dealing with the said agent or factor acting as such for the same
principal or owner, or from previous advances of money or materials
found, or work or labor done for the use or advantage of the said prin-
cipal or owner.

This section was intended to apply to cases of sales made by agents known
to be acting as such, and does not restrict the right of set-off in cases
of sales made by agents supposed to be acting as principals. This section
held to have no application. Miller v. Lea, 35 Md. 408.

As to pleading "set-off," see art. 75, sections 12 and 13.

Ibid. sec. 8. 1888, art. 2, sec. 8. 1860, art. 3, sec. 8. 1825, ch. 182, sec. S.

8. In no case shall any claim or demand of set-off of a debt due by
any agent or factor be allowed against his principal in favor of any
person or body corporate receiving goods, wares or merchandise as
aforesaid, in pursuance of a contract of sale or in deposit or pledge,
unless such person or body corporate shall have contracted for or
received the same on deposit or pledge, without knowledge that such
agent or factor had no authority to sell or deposit the same.

Ibid. sec. 9. 1888, art. 2, sec. 9. 1860, art. 3, sec. 9. 1825, ch. 182, sec. 6.

9. The owner of any such goods, wares or merchandise in the
hands of an agent or factor, unsold and not pledged, may demand and
recover the same from such agent or factor, or the trustee of such agent
or factor in the event of his insolvency, and in preference to all other
creditors of such agent or factor.

Ibid. sec. 10. 1888, art. 2, sec. 10. 1860, art. 3, sec. 10. 1825, ch. 182, sec. 6.

10. The said owner may also recover from any person or body cor-
porate the sum agreed to be paid for the purchase of such goods, wares
or merchandise, subject, however, to the same right of set-off on the
part of such person or body corporate, against such agent or factor as