California Commercial Code

§ 10305

COM § 10305 Effective Jul 15, 1991Div. 10 · Ch. 3

Statute text

(a)Subject to the provisions of Section 10303, a buyer or sublessee from the lessee of goods under an existing lease contract obtains, to the extent of the interest transferred, the leasehold interest in the goods that the lessee had or had power to transfer, and, except as provided in subdivision (b) of this section and subdivision (d) of Section 10511, takes subject to the existing lease contract. A lessee with a voidable leasehold interest has power to transfer a good leasehold interest to a good faith buyer for value or a good faith sublessee for value, but only to the extent set forth in the preceding sentence. When goods have been delivered under a transaction of lease the lessee has that power even though:

(1)The lessor was deceived as to the identity of the lessee;

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

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Legislative history

Amended by Stats. 1991, Ch. 111, Sec. 27. Effective July 15, 1991.