(b) has no notice of anyone else’s [pertinent] outstanding rights; and
(c) acts in good faith concerning the purchase.
EXAMPLE:
John owns a textile mill; and stores his products in a warehouse. The owner of the warehouse sells several boxes of shirts to Jane [without John’s permission]. Jane suspects no wrongdoing, because she has frequently dealt with the warehouse in a similar manner (without any trouble). Since John left the goods with the warehouse, the subsequent sale to Jane [for value] makes Jane a bona fide purchaser – who is legally entitled to own the goods. Jane even has superior claim to the goods [over John]. Therefore – in order to get compensated for his loss – John must pursue his claim against the warehouse owner.see holder-in-due-course
