Cal. Codes » Commercial Code / DIVISION 2. SALES / CHAPTER 4. Title, Creditors and Good Faith Purchasers
California Codes

Cal. Commercial Code § 2403 (2026)

✓ current as of May 2026
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(1)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

(a)The transferor was deceived as to the identity of the purchaser, or

(b)The delivery was in exchange for a check which is later dishonored, or

(c)It was agreed that the transaction was to be a “cash sale,” or

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

(2)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.

(3)“Entrusting” includes any delivery and any acquiescence in retention of possession for the purpose of sale, obtaining offers to purchase, locating a buyer, or the like; regardless of any condition expressed between the parties to the delivery or acquiescence and regardless of whether the procurement of the entrusting or the possessor’s disposition of the goods have been such as to be larcenous under the criminal law.

(4)The rights of other purchasers of goods and of lien creditors are governed by the divisions on secured transactions (Division 9), bulk transfers (Division 6) and documents of title (Division 7).

Notes of Decisions
Cited in 6 cases (1 in the last 5 years), 1968–2023 · leading case: David Cassirer v. Thyssen-Bornemisza Collection, 69 F.4th 554 (9th Cir. 2023).
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David Cassirer v. Thyssen-Bornemisza Collection, 69 F.4th 554 (9th Cir. 2023). “3d at 1359 (citing Cal. Com. Code § 2403 (1)); see also CRS Recovery, Inc.”
Sebastian Int'l, Inc. v. Russolillo, 186 F. Supp. 2d 1055 (C.D. Cal. 2000). “TSA and Teepe's reply papers cite California Commercial Code § 2403 as evidence that Nadell's reasoning has been superseded.”
Calva Prods. v. Sec. Pac. Nat'l Bank, 111 Cal. App. 3d 409 (Cal. Ct. App. 1980). “” Such legislative realignments of priorities have been justified on the theory that the bailor is estopped to assert title to goods where he or she knew that the bailee was in the business of selling such goods and thus helped to create the appearance of ownership of the goods…”
U.S. Bank, N.A. v. Deseret Farms of California, Inc. (In Re Sargent Walnut Ranches, Inc.), 219 B.R. 880 (Bankr. E.D. Cal. 1998). · cites it 2× “Cal. Comm.Code § 2403(1). 3 Cf. Morgold, Inc.”
Budget Rent-A-Car of S. Cal. v. Bergman, 31 U.C.C. Rep. Serv. (West) 897 (Cal. Ct. App. 1981). “er’s authority to sell the goods to a bona fide purchaser; (2) Under Commercial Code section *261 2403, subdivision (2), entrustment of personal property to a dealer in such goods empowers him to convey good title to a buyer in the ordinary course of business; (3) The lease of…”
Morris Plan Co. v. Moody, 266 Cal. App. 2d 28 (Cal. Ct. App. 1968). “” Plaintiff *30 asserts nothing in the legislative history indicates, vehicles are removed from the operation of Commercial Code, section 2403. Commercial Code, section 2403 is part of division 2 of the Commercial Code.”
— Cal. Commercial Code § 2403(1) — 1 case
U.S. Bank, N.A. v. Deseret Farms of California, Inc. (In Re Sargent Walnut Ranches, Inc.), 219 B.R. 880 (Bankr. E.D. Cal. 1998). “Cal. Comm.Code § 2403(1). 3 Cf. Morgold, Inc.”
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