§ 25-2-312. Warranty of title and against infringement; buyer's obligation against infringement. - North Carolina Statutes

§25‑2‑312.  Warranty of title and against infringement; buyer'sobligation against infringement.

(1)        Subject tosubsection (2) there is in a contract for sale a warranty by the seller that

(a)        the title conveyedshall be good, and its transfer rightful; and

(b)        the goods shall bedelivered free from any security interest or other lien or encumbrance of whichthe buyer at the time of contracting has no knowledge.

(2)        A warranty undersubsection (1) will be excluded or modified only by specific language or bycircumstances which give the buyer reason to know that the person selling doesnot claim title in himself or that he is purporting to sell only such right ortitle as he or a third person may have.

(3)        Unless otherwiseagreed a seller who is a merchant regularly dealing in goods of the kindwarrants that the goods shall be delivered free of the rightful claim of anythird person by way of infringement or the like but a buyer who furnishesspecifications to the seller must hold the seller harmless against any suchclaim which arises out of compliance with the specifications. (1965,c. 700, s. 1.)