ILCS » Chapter 810 · Act 5
Illinois Compiled Statutes

810 ILCS 5/2-403 (2026)

Power to transfer; good faith purchase of goods; "entrusting"

✓ current as of May 2026
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(810 ILCS 5/2-403) (from Ch. 26, par. 2-403)
    Sec. 2-403. Power to transfer; good faith purchase of goods; "entrusting".
    (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 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 Articles on Secured Transactions (Article 9) and Documents of Title (Article 7).
(Source: P.A. 87-308.)


 
    (810 ILCS 5/Art. 2 Pt. 5 heading)
PART 5. PERFORMANCE

    
Notes of Decisions
Cited in 4 cases, 1997–2007 · leading case: In Re Farbman, 244 B.R. 135 (Bankr. N.D. Ill. 2000).
Sort: Relevance Newest Treatment
In Re Farbman, 244 B.R. 135 (Bankr. N.D. Ill. 2000). “According to Bell it was caused harm by the "sale of the car" by Debtor to Schultz because pursuant to Illinois law under 810 ILCS 5/2-403(2), Bell entrusted the car to Debtor and Debtor was authorized to transfer to Schultz all rights that Bell had to the car, even though Bell…”
Bell Auto Leasing, Inc. v. Farbman (In re Farbman), 244 B.R. 131 (Bankr. N.D. Ill. 2000). “According to Bell it was caused harm by the “sale of the car” by Debtor to Schultz because pursuant to Illinois law under 810 ILCS 5/2-403(2), Bell entrusted the car to Debtor and Debtor was authorized to transfer to Schultz all rights that Bell had to the car, even though Bell…”
Libertyville Toyota v. U.S. Bank (Ill. App. Ct. 2007). · cites it 2× “Libertyville argues that ALC, not having title to the vehicles, could not transfer them pursuant to section 2-403(1) of the Uniform Commercial Code (the UCC) (810 ILCS 5/2-403(1) (West 2004)). Libertyville further argues that U.”
Bank One v. Loeber Motors, Inc. (Ill. App. Ct. 1997). · cites it 3× “" 810 ILCS 5/2-403(2) (West 1994). The doctrine applies only where the following elements are met: (1) an actual entrustment of the goods by the delivery of possession to a merchant; (2) the party that receives the goods must be a merchant who deals in goods of that kind; (3)…”
810 ILCS 5/2-403(1): 1 case
Libertyville Toyota v. U.S. Bank (Ill. App. Ct. 2007). “Libertyville argues that ALC, not having title to the vehicles, could not transfer them pursuant to section 2-403(1) of the Uniform Commercial Code (the UCC) (810 ILCS 5/2-403(1) (West 2004)). Libertyville further argues that U.”
810 ILCS 5/2-403(2): 4 cases
In Re Farbman, 244 B.R. 135 (Bankr. N.D. Ill. 2000). “According to Bell it was caused harm by the "sale of the car" by Debtor to Schultz because pursuant to Illinois law under 810 ILCS 5/2-403(2), Bell entrusted the car to Debtor and Debtor was authorized to transfer to Schultz all rights that Bell had to the car, even though Bell…”
Bell Auto Leasing, Inc. v. Farbman (In re Farbman), 244 B.R. 131 (Bankr. N.D. Ill. 2000). “According to Bell it was caused harm by the “sale of the car” by Debtor to Schultz because pursuant to Illinois law under 810 ILCS 5/2-403(2), Bell entrusted the car to Debtor and Debtor was authorized to transfer to Schultz all rights that Bell had to the car, even though Bell…”
Bank One v. Loeber Motors, Inc. (Ill. App. Ct. 1997). “" 810 ILCS 5/2-403(2) (West 1994). The doctrine applies only where the following elements are met: (1) an actual entrustment of the goods by the delivery of possession to a merchant; (2) the party that receives the goods must be a merchant who deals in goods of that kind; (3)…”
Libertyville Toyota v. U.S. Bank (Ill. App. Ct. 2007). “Libertyville argues that ALC, not having title to the vehicles, could not transfer them pursuant to section 2-403(1) of the Uniform Commercial Code (the UCC) (810 ILCS 5/2-403(1) (West 2004)). Libertyville further argues that U.”
810 ILCS 5/2-403(3): 1 case
Bank One v. Loeber Motors, Inc. (Ill. App. Ct. 1997). “" 810 ILCS 5/2-403(2) (West 1994). The doctrine applies only where the following elements are met: (1) an actual entrustment of the goods by the delivery of possession to a merchant; (2) the party that receives the goods must be a merchant who deals in goods of that kind; (3)…”
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