ORS 72.4030
Power to transfer

  • good faith purchase of goods
  • “entrusting”


A purchaser of goods acquires all title which the 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:


The transferor was deceived as to the identity of the purchaser; or


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


It was agreed that the transaction was to be a “cash sale”; or


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


Notwithstanding any other provision of this section, when livestock has been delivered under a transaction of purchase, is transported by private, common or contract carrier and on the accompanying brand inspection certificate or memorandum of brand inspection certificate the seller has noted that as consideration for the transaction of purchase a draft, check, certificate of deposit or note was given, if the draft, check, certificate of deposit or note is later dishonored, the buyer does not have power to transfer good title to a good faith purchaser for value.


Any entrusting of possession of goods to a merchant who deals in goods of that kind gives the merchant power to transfer all rights of the entruster to a buyer in ordinary course of business.


“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 of the possessor’s disposition of the goods have been such as to be larcenous under the criminal law.


The rights of other purchasers of goods and of lien creditors are governed by ORS chapter 79 on secured transactions and ORS chapter 77 on documents of title. [1961 c.726 §72.4030 (Power to transfer); 1973 c.287 §2; 1991 c.83 §4; 2001 c.445 §137]

Notes of Decisions

Since a purchaser of converted property has no better title than that of the seller, the defendant was liable to the plaintiff for the property or its value. Whitlock v. Hogrefe, 278 Or 739, 565 P2d 1092 (1977)

Law Review Citations

17 WLR 843 (1981)

Chapter 72

Law Review Citations

53 OLR 468-473 (1974); 58 OLR 545 (1980)


Last accessed
Jun. 26, 2021