Nebraska Uniform Commercial Code 2-312

UCC 2-312

2-312.

Warranty of title and against infringement; buyer's obligation against infringement.

(1) Subject to subsection (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 subsection (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.

Source

  • Laws 1963, c. 544, Art. II, § 2-312, p. 1721.

Annotations

  • The seller breaches the warranty of title under this section by delivering a defective certificate of title to the buyer of a motor vehicle. McCoolidge v. Oyvetsky, 292 Neb. 955, 874 N.W.2d 892 (2016).

  • The seller breaches the warranty of title under this section if there is a substantial cloud or shadow over the title, even if no third party has come forward with a superior claim. McCoolidge v. Oyvetsky, 292 Neb. 955, 874 N.W.2d 892 (2016).

  • Since contract did not waive warranty by contractor seller that title conveyed to pollution control corporation would be good, contractor seller was liable to it for breach of warranty against liens and encumbrances. Omaha Pollution Control Corp. v. Carver-Greenfield Corp., 413 F.Supp. 1069 (D. Neb. 1976).