A mercantile AGENT is, with the consent of the owner, in possession of goods or documents of title, and in the ordinary course of business sells the goods to a buyer who takes in GOOD FAITH and without notice of the want of authority. Under Section 27 of the Sale of Goods Act, 1930 (read with Section 2(9) and the applicable rule):

Section 27 of the Sale of Goods Act embodies the general rule of nemo dat, but recognizes an exception in favour of a buyer in GOOD FAITH from a MERCANTILE AGENT who, with the consent of the owner, is in possession of goods or of documents of title, and sells them in the ORDINARY COURSE of business. The buyer who takes without notice of the agent's want of authority obtains a GOOD title. This protects commercial confidence in the ostensible authority of agents in possession. The exception is a hallmark of the Factors Act-derived law on mercantile agents. Good faith and ordinary course are the operative conditions.