(810 ILCS 5/Art. 2 Pt. 4 heading) PART 4.
TITLE, CREDITORS AND GOOD FAITH PURCHASERS
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(810 ILCS 5/2-401) (from Ch. 26, par. 2-401)
Sec. 2-401. Passing of title; reservation for security; limited application of this
Section.
Each provision of this Article with regard to the rights, obligations
and remedies of the seller, the buyer, purchasers or other third parties
applies irrespective of title to the goods except where the provision
refers to such title. Insofar as situations are not covered by the other
provisions of this Article and matters concerning title become material the
following rules apply:
(1) Title to goods cannot pass under a contract for | ||
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(2) Unless otherwise explicitly agreed title passes | ||
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(a) if the contract requires or authorizes the | ||
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(b) if the contract requires delivery at | ||
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(3) Unless otherwise explicitly agreed where delivery | ||
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(a) if the seller is to deliver a tangible | ||
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(b) if the goods are at the time of contracting | ||
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(4) A rejection or other refusal by the buyer to | ||
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(Source: P.A. 95-895, eff. 1-1-09 .)
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(810 ILCS 5/2-402) (from Ch. 26, par. 2-402)
Sec. 2-402.
Rights of seller's creditors against sold goods.
(1) Except as provided in subsections (2) and (3), rights of unsecured
creditors of the seller with respect to goods which have been identified to
a contract for sale are subject to the buyer's rights to recover the goods
under this Article (Sections 2-502 and 2-716).
(2) A creditor of the seller may treat a sale or an identification of
goods to a contract for sale as void if as against him a retention of
possession by the seller is fraudulent under any rule of law of the state
where the goods are situated, except that retention of possession in good
faith and current course of trade by a merchant-seller for a commercially
reasonable time after a sale or identification is not fraudulent.
(3) Nothing in this Article shall be deemed to impair the rights of
creditors of the seller
(a) under the provisions of the Article on Secured | ||
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(b) where identification to the contract or delivery | ||
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(Source: Laws 1961, p. 2101 .)
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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 | ||
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(b) the delivery was in exchange for a check which is | ||
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(c) it was agreed that the transaction was to be a | ||
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(d) the delivery was procured through fraud | ||
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(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.)
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