Asked by Karrah Kelley on Sep 30, 2024

UCC 9-307 states that a buyer who purchases a good in a normal type transaction is a good faith purchaser and owns the good free and clear of previous security liens on goods.

UCC 9-307

A provision under the Uniform Commercial Code that deals with a buyer's rights in goods purchased from a seller who does not have clear title, subject to certain conditions.

Good Faith Purchaser

An individual who buys property without knowledge of any existing claims, disputes, or faults of the property, thereby obtaining legal ownership.

Security Liens

A legal right or interest that a creditor has in the debtor's property, lasting usually until the debt that it secures is paid.

  • Determine the conditions that establish whether a buyer or seller possesses valid title to goods.