Texas Business & Commerce Code - Section 2.312. Warranty Of Title And Against Infringement; Buyer's Obligation Against Infringement

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§ 2.312. WARRANTY OF TITLE AND AGAINST INFRINGEMENT;  
BUYER'S OBLIGATION AGAINST INFRINGEMENT.  (a) Subject to 
Subsection (b) there is in a contract for sale a warranty by the 
seller that
		(1)  the title conveyed shall be good, and its transfer 
rightful;  and      
		(2)  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.
	(b)  A warranty under Subsection (a) 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.
	(c)  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.

Acts 1967, 60th Leg., p. 2343, ch. 785, § 1, eff. Sept. 1, 1967.           

Last modified: August 10, 2007