Art.

1503
Transfer of ownership by delivery of specific goods to carrier or other
bailee
Gen. Rule: Delivery, be it only constructive, passes title in the thing sold
Delivery to the carrier is deemed to be a delivery to the buyer
Exceptions, ownership is retained by the seller despite delivery to carrier in the
following cases:
1.

When there is a stipulation to that effect.

2.

When by the terms of the bill of lading, the goods are to be delivered to the
seller or his agent or to the order of the seller or his agent.

3.

When by the terms of the bill of lading, the goods are to be delivered to the
order of the buyer or his agent, but the bill of lading is retained by the seller.

4.

When the seller draws on the buyer a bill of exchange for the price of the

goods and transmits

the bill of exchange and the bill of lading to the buyer to

secure acceptance or payment of the

bill of exchange, but the buyer

dishonors such bill of exchange.

Where seller or his agent is consignee
1) Carrier becomes bailee for seller - Where goods are shipped and by the bill of
lading the goods are deliverable to the seller or his agent or to the order of the
seller or his agent, the seller reserves the ownership in the goods and the carrier
is a bailee for him not the buyer.
2) Rights of seller - The seller may, even in violation of the contract, dispose the
goods to third persons. He is liable for damages to the buyer but the second
purchase acquires a better right.
Where sellers title only for purpose of security
1) Form of bill of lading not conclusive
2) Where ownership would have passed but for the form of the bill of lading Where the title to the goods is held merely for the purpose of security, the
beneficial owner (buyer), not the one who holds for security (seller), bears the risk
of loss or deterioration.