A consigns his goods to a mercantile agent for sale. The agent, acting in the ordinary course of business, sells the goods to B, who buys in good faith without notice of any defect in the agent's authority. As between A and B under the Sale of Goods Act, 1930:

Under Section 27 of the Sale of Goods Act, 1930, subject to the exceptions, where goods are sold by a person who is not the owner and does not sell with the owner's authority, the buyer acquires no better title than the seller had. The proviso to Section 27 creates a key exception: a buyer in good faith and without notice of the seller's defect of title obtains a good title where the seller is a mercantile agent who is in possession of the goods with the consent of the owner and sells them in the ordinary course of business. The owner's consent is to the agent's possession, not to the particular sale. The buyer's title is therefore good as against the owner, and the goods cannot be recovered from the bona fide purchaser.