California Commercial Code

§ 10304

COM § 10304 Effective Jul 15, 1991Div. 10 · Ch. 3

Statute text

(a)Subject to Section 10303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the leasehold interest transferred, the leasehold interest in the goods that the lessor had or had power to transfer, and, except as provided in subdivision (b) of this section and subdivision (d) of Section 10527, takes subject to the existing lease contract. A lessor with voidable title has power to transfer a good leasehold interest to a good faith subsequent lessee for value, but only to the extent set forth in the preceding sentence. If goods have been delivered under a transaction of purchase, the lessor has that power even though:

(1)The lessor’s transferor was deceived as to the identity of the lessor;

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

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Legislative history

Amended by Stats. 1991, Ch. 111, Sec. 26. Effective July 15, 1991.