One who has allowed another to assume the apparent ownership of property for the purpose of making any transfer of it cannot set up his own title to defeat a pledge of the property made by the other to a pledgee who received the property in good faith in the ordinary course of business and for value.

Source: CivC 1877, § 1762; CL 1887, § 4397; RCivC 1903, § 2109; RC 1919, § 1610; SDC 1939, § 39.0505.