Colorado § 4-2-403 Power to transfer - good faith purchase of goods - entrusting

Colorado Statutes

§ 4-2-403 — Power to transfer - good faith purchase of goods - entrusting

Colorado·Title 04 Uniform·Art. Sales

(1)A purchaser of goods acquires all title which his transferor had or had power to transfer; except, that a purchaser of a limited interest acquires rights only to the extent of the interest purchased. A person with voidable title has power to transfer a good title to a good faith purchaser for value. When goods have been delivered under a transaction of purchase, the purchaser has such power even though:

(a)The transferor was deceived as to the identity of the purchaser, or

(b)The delivery was in exchange for a check which is later dishonored, or

(c)It was agreed that the transaction was to be a cash sale, or

(d)The delivery was procured through fraud punishable as larcenous under the criminal law. (1.5) Notwithstanding any other provision of this section, when livestock h

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(1) A purchaser of goods acquires all title which his transferor had or had power to
transfer; except, that a purchaser of a limited interest acquires rights only to the
extent of the interest purchased. A person with voidable title has power to transfer
a good title to a good faith purchaser for value. When goods have been delivered
under a transaction of purchase, the purchaser has such power even though:

(a) The transferor was deceived as to the identity of the purchaser, or

(b) The delivery was in exchange for a check which is later dishonored, or

(c) It was agreed that the transaction was to be a cash sale, or

(d) The delivery was procured through fraud punishable as larcenous under
the criminal law.

(1.5) Notwithstanding any other provision of this section, when livestock have
been delivered under a transaction of purchase and on the accompanying brand
inspection certificate or memorandum of brand inspection certificate the seller has
conspicuously noted that payment of the consideration for the transaction has not
been received, the buyer does not have power to transfer good title to a good faith
purchaser for value until payment is made.

(2) Any entrusting of possession of goods to a merchant who deals in goods
of that kind gives him power to transfer all rights of the entruster to a buyer in
ordinary course of business.

(3) Entrusting includes any delivery and any acquiescence in retention of
possession regardless of any condition expressed between the parties to the
delivery or acquiescence and regardless of whether the procurement of the
entrusting or the possessor's disposition of the goods have been such as to be
larcenous under the criminal law.

(4) The rights of other purchasers of goods and of lien creditors are
governed by the articles on secured transactions (article 9 of this title) and
documents of title (article 7 of this title).

Colorado § 4-2-403 (Power to transfer - good faith purchase of goods - entrusting) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

Source: L. 65: p. 1320, � 1. C.R.S. 1963: � 155-2-403. L. 75: (1.5) added, p. 232, � 3, effective June 20. L. 91: (4) amended, p. 270, � 4, effective July 1.