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HomeCommercial CodeDiv. 2Ch. 3§ 2312 Seller'S Title And Lien Warranty

§ 2312 Seller'S Title And Lien Warranty

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 2312 Seller'S Title And Lien Warranty

This law says that when a seller sells something, they promise the buyer that they own it and can give it to the buyer, and that there are no hidden claims or liens on it that the buyer didn't know about.

Key Takeaways

  • •The seller must give a good, clear title and cannot hide any other rights to the item.
  • •Any change to this promise must be written in clear language that the buyer can understand.
  • •If the buyer provides specific instructions, the seller must protect the buyer from any claims that arise from following those instructions.

Example

You buy a used bicycle from a shop and the shop says you get a clear title to the bike.

The shop is promising that the bike is theirs to sell and that no one else has a right to claim it. If the shop tries to hide that a previous owner still owns it, the buyer can rely on this law to challenge the shop.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 2312 Seller'S Title And Lien Warranty

(1) Subject to subdivision (2) there is in a contract for sale a warranty by the seller that (a) The title conveyed shall be good, and its transfer rightful; and (b) The goods shall be delivered free from any security interest or other lien or encumbrance of which the buyer at the time of contracting has no knowledge. (2) A warranty under subdivision (1) will be excluded or modified only by specific language or by circumstances which give the buyer reason to know that the person selling does not claim title in himself or that he is purporting to sell only such right or title as he or a third person may have. (3) Unless otherwise agreed a seller who is a merchant regularly dealing in goods of the kind warrants that the goods shall be delivered free of the rightful claim of any third person by way of infringement or the like but a buyer who furnishes specifications to the seller must hold the seller harmless against any such claim which arises out of compliance with the specifications. (Enacted by Stats. 1963, Ch. 819.)

Last verified: January 10, 2026

Key Terms

contract for salewarrantytitle conveyedsecurity interestencumbrancemerchantinfringementspecifications

Related Statutes

  • § 10211 Lessor Warranty Against Claims
  • § 10307 Lessee Creditor Rights
  • § 1310 Subordination Of Obligations
  • § 17302 Continued Perfection Transition
  • § 17303 Unperfected Security Interests

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 2312.
View Official Source