Montana § 30-2-403 Power To Transfer -- Good Faith Purchase Of Goods -- "entrusting"

Montana Statutes

§ 30-2-403 — Power To Transfer -- Good Faith Purchase Of Goods -- "entrusting"

Montana § 30-2-403

Title 30TRADE AND COMMERCE

Ch. 2UNIFORM COMMERCIAL CODE SALES

Part 4Title, Creditors, and Good Faith Purchasers

This text of Montana § 30-2-403 (Power To Transfer -- Good Faith Purchase Of Goods -- "entrusting") is published on Counsel Stack Legal Research, covering Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mont. Code Ann. § 30-2-403 (2026).

Text

30-2-403 . Power to transfer -- good faith purchase of goods -- "entrusting".

(1)A purchaser of goods acquires all title which the purchaser's 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 the power even though:

(a)the transferor was deceived as to the identity of the purchaser;

(b)the delivery was in exchange for a check which is later dishonored;

(c)it was agreed that the transaction was to be a "cash sale"; or

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

(2)Any

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30-2-403 . Power to transfer -- good faith purchase of goods -- "entrusting". (1) A purchaser of goods acquires all title which the purchaser's 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 the power even though:
(a) the transferor was deceived as to the identity of the purchaser;
(b) the delivery was in exchange for a check which is later dishonored;
(c) it was agreed that the transaction was to be a "cash sale"; or
(d) the delivery was procured through fraud punishable as theft under the criminal law.
(2) Any entrusting of possession of goods to a merchant who deals in goods of that kind gives the merchant 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 has been such as to constitute theft under the criminal law.
(4) The rights of other purchasers of goods and of lien creditors are governed by the chapters on secured transactions (chapter 9A) and documents of title (chapter 7).

Legislative History

En. Sec. 2-403, Ch. 264, L. 1963; amd. Sec. 63, Ch. 359, L. 1977; R.C.M. 1947, 87A-2-403; amd. Sec. 5, Ch. 410, L. 1991; amd. Sec. 853, Ch. 56, L. 2009.