(1) Where a mercantile agent is entrusted as such with the possession of any
goods or the documents of title to goods, any sale pledge or other disposition
of the goods made by the agent in the ordinary course of business of a
mercantile agent shall, subject to the provisions of this Act, be as valid as
if the agent were expressly authorised by the owner of the goods to make the
same:
Provided that the person taking under the disposition acts in good faith, and
has not at the time of the disposition notice that the person making the
disposition has not authority to make the same.
(2) Where a mercantile agent
so entrusted continues in possession of goods or of the documents of title to
goods, any sale pledge or other disposition, which would have been valid if
the entrusting had continued, shall be valid notwithstanding the determination
thereof, provided that the person taking under the disposition has not at the
time thereof notice of such determination.
