Colorado Code
Part 4 - Title, Creditors, and Good Faith Purchasers
§ 4-2-403. Power to Transfer - Good Faith Purchase of Goods - "Entrusting"

(1.5) Notwithstanding any other provision of this section, when livestock have been delivered under a transaction of purchase and on the accompanying brand inspection certificate or memorandum of brand inspection certificate the seller has conspicuously noted that payment of the consideration for the transaction has not been received, the buyer does not have power to transfer good title to a good faith purchaser for value until payment is made.




Source: L. 65: p. 1320, § 1. C.R.S. 1963: § 155-2-403. L. 75: (1.5) added, p. 232, § 3, effective June 20. L. 91: (4) amended, p. 270, § 4, effective July 1.
Editor's note - Colorado legislative change: Colorado added subsection (1.5). There is no counterpart to subsection (1.5) in the uniform act. Colorado adopted Revised Article 6 - Bulk Sales (Alternative B) which was repealed in 1991 and the corresponding reference to "bulk sales" was deleted in subsection (4) in 1991.
Prior Uniform Statutory Provision: Sections 20(4), 23, 24, 25, Uniform Sales Act; Section 9, especially 9(2), Uniform Trust Receipts Act; Section 9, Uniform Conditional Sales Act.
Changes: Consolidated and rewritten.
Purposes of Changes: To gather together a series of prior uniform statutory provisions and the case-law thereunder and to state a unified and simplified policy on good faith purchase of goods.




On the other hand, the contract of purchase is of course limited by its own terms as in a case of pledge for a limited amount or of sale of a fractional interest in goods.
The principle is extended in subsection (3) to fit with the abolition of the old law of "cash sale" by subsection (1)(c). It is also freed from any technicalities depending on the extended law of larceny; such extension of the concept of theft to include trick, particular types of fraud, and the like is for the purpose of helping conviction of the offender; it has no proper application to the long-standing policy of civil protection of buyers from persons guilty of such trick or fraud. Finally, the policy is extended, in the interest of simplicity and sense, to any entrusting by a bailor; this is in consonance with the explicit provisions of Section 7-205 on the powers of a warehouseman who is also in the business of buying and selling fungible goods of the kind he warehouses. As to entrusting by a secured party, subsection (2) is limited by the more specific provisions of Section 9-307(1), which deny protection to a person buying farm products from a person engaged in farming operations.
Cross References:
Point 1: Sections 4-1-103 and 4-1-201.
Point 2: Sections 4-1-201, 4-2-402, 7-205 and 9-307(1).
Points 3 and 4: Sections 1-102, 4-1-201, 4-2-104, 4-2-707 and Articles 6, 7 and 9.
Definitional Cross References:
"Buyer in ordinary course of business". Section 4-1-201.
"Good faith". Sections 4-1-201 and 4-2-103.
"Goods". Section 4-2-105.
"Person". Section 4-1-201.
"Purchaser". Section 4-1-201.
"Signed". Section 4-1-201.
"Term". Section 4-1-201.
"Value". Section 4-1-201.

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