(1) Where a person having sold goods continues or is in possession of the
goods or of the documents of title to the goods, the delivery or transfer by
that person or by a mercantile agent acting for that person of the goods or
documents of title under any sale pledge or other disposition thereof to any
person receiving the same in good faith and without notice of the previous
sale shall have the same effect as if the person making the delivery or
transfer were expressly authorised by the owner of the goods to make the same.
(2) Where a person having bought or agreed to buy goods obtains with the
consent of the seller possession of the goods or the documents of title to the
goods, the delivery or transfer by that person or by a mercantile agent acting
for that person of the goods or documents of title under any sale pledge or
other disposition thereof to any person receiving the same in good faith and
without notice of any lien or other right of the original seller in respect of
the goods shall have the same effect as if the person making the delivery or
transfer were a mercantile agent intrusted by the owner with the goods or
documents of title.
(3) In this section the term
"mercantile agent" means a mercantile agent having in the customary course of
business as such agent authority either to sell goods, or to consign goods for
the purpose of sale, or to buy goods, or to raise money on the security of
goods.
