Texas Business & Commerce Code

§ 2.403 — POWER TO TRANSFER; GOOD FAITH PURCHASE OF GOODS; "ENTRUSTING"

BC § 2.403Title 1. UNIFORM COMMERCIAL CODE · Ch. 2. SALES · Art. D. TITLE, CREDITORS AND GOOD FAITH PURCHASERS

Statute text

(a)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, or

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

(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)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.

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Legislative history

Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1, 1967. Amended by Acts 1993, 73rd Leg., ch. 570, Sec. 3, eff. Sept. 1, 1993.