South Australian Consolidated Acts South Australian Consolidated Acts25—Seller or buyer in possession after sale
(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 him, 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 him, 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 in possession of the goods or documents of title with the
consent of the owner.
(3) In this section
the term "mercantile agent" shall mean a mercantile agent having in the
customary course of his 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.
(4)
Subsection (2) does not operate to defeat an interest that is registered
under the Goods Securities Act 1986 .