400.2-312. Warranty of title and against infringement--buyer's obligation against infringement.

Warranty of title and against infringement--buyer's obligation againstinfringement.

400.2-312. (1) Subject to subsection (2) there is in acontract for sale a warranty by the seller that

(a) the title conveyed shall be good, and its transferrightful; and

(b) the goods shall be delivered free from any securityinterest or other lien or encumbrance of which the buyer at thetime of contracting has no knowledge.

(2) A warranty under subsection (1) will be excluded ormodified only by specific language or by circumstances which givethe buyer reason to know that the person selling does not claimtitle in himself or that he is purporting to sell only such rightor title as he or a third person may have.

(3) Unless otherwise agreed a seller who is a merchantregularly dealing in goods of the kind warrants that the goodsshall be delivered free of the rightful claim of any third personby way of infringement or the like but a buyer who furnishesspecifications to the seller must hold the seller harmlessagainst any such claim which arises out of compliance with thespecifications.

(L. 1963 p. 503 § 2-312)