---
title: O.C.G.A. § 11-2-403. Power to transfer; good faith purchase of goods; “entrusting.”
collection: code
id: 11-2-403
cite_as: O.C.G.A. § 11-2-403 (2025)
canonical_url: https://georgiacommons.org/code/11-2-403
md_url: https://georgiacommons.org/code/11-2-403.md
text_url: https://georgiacommons.org/code/11-2-403/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t11-(v9)-2022-pdf.pdf?sfvrsn=b5451bbd_0#page=175
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: COMMERCIAL CODE / SALES / TITLE, CREDITORS, AND GOOD FAITH PURCHASERS
---

# O.C.G.A. § 11-2-403. 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 of this title), bulk transfers (Article 6 of this title), and documents of title (Article 7 of this title).

## History

Code 1933, § 109A-2-403, enacted by Ga. L. 1962, p. 156, § 1.

## Cross References

Effect of sale to person without notice of equity, § 23-1-19.

## Law Reviews

For comment on Hewitt v. Malone, 105 Ga. App. 281, 124 S.E.2d 501 (1962), see 25 Ga. B.J. 218 (1962).

For article discussing, “Voidability of Minors’ Contracts: A Feudal Doctrine in a Modern Economy,” see 1 Ga. L. Rev. 205 (1967).

For article discussing the resolution of conflicting claims to goods between an unsecured seller of goods and a creditor of a buyer claiming under an after-acquired property clause, see 28 Mercer L. Rev. 625 (1977).

For article, “The Good Faith Purchase Idea and the Uniform Commercial Code,” see 15 Ga. L. Rev. 605 (1981).

For article surveying developments in Georgia commercial law from mid-1980 through mid-1981, see 33 Mercer L. Rev. 33 (1981).

For note, “An Avenue for Fairness: Dis-closure-Based Compensation Schemes for Good Faith Purchasers of Stolen Art,” see 54 Ga. L. Rev. 1015 (2020).