§ 2403 — Power to transfer; good faith purchase of goods; "entrusting."

Pennsylvania § 2403

• Jurisdiction: Pennsylvania
• Title 13: COMMERCIAL CODE
• Ch. 24: TITLE, CREDITORS AND GOOD FAITH PURCHASERS

Text

(a) Transfer of title.--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:

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

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

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

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

(b) Transfer by merchant entrusted with possession of goods.--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.

(c) Definition of "entrusting".--"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 disposition of the goods by the possessor has been such as to be larcenous under the criminal law.

(d) Rights of other purchasers and lien creditors.--The rights of other purchasers of goods and of lien creditors are governed by Division 7 (relating to documents of title) and Division 9 (relating to secured transactions).

Legislative History

(July 9, 1992, P.L.507, No.97, eff. one year) 1992 Amendment.Act 97 amended subsec. (d). Cross References.Section 2403 is referred to in sections 2103, 2702, 2A103, 7209, 7503, 9315 of this title.