§ 2-403 — Power to Transfer; Good Faith Purchase of Goods; "Entrusting"

New York § 2-403

• Jurisdiction: New York
• Law UCC: Uniform Commercial Code
• Part 4: Title, Creditors and Good Faith Purchasers
• Art. 2: Sales

Text

Section 2--403. Power to Transfer; Good Faith Purchase of Goods;\n "Entrusting".\n (1) A purchaser of goods acquires all title which his transferor had\nor had power to transfer except that a purchaser of a limited interest\nacquires rights only to the extent of the interest purchased. A person\nwith voidable title has power to transfer a good title to a good faith\npurchaser for value. When goods have been delivered under a transaction\nof purchase the purchaser has such power even though\n (a) the transferor was deceived as to the identity of the\n purchaser, or\n (b) the delivery was in exchange for a check which is later\n dishonored, or\n (c) it was agreed that the transaction was to be a "cash sale",\n or\n (d) the delivery was procured through fraud punishable as\n larcenous under the criminal law.\n (2) Any entrusting of possession of goods to a merchant who deals in\ngoods of that kind gives him power to transfer all rights of the\nentruster to a buyer in ordinary course of business.\n (3) "Entrusting" includes any delivery and any acquiescence in\nretention of possession regardless of any condition expressed between\nthe parties to the delivery or acquiescence and regardless of whether\nthe procurement of the entrusting or the possessor's disposition of the\ngoods has been such as to be larcenous under the criminal law.\n (4) The rights of other purchasers of goods and of lien creditors are\ngoverned by the Articles on Secured Transactions (Article 9), Bulk\nTransfers (Article 6) and Documents of Title (Article 7).\n