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Warehouse Receipt Law Reviewer
Warehouse Receipt Law Reviewer
(ACT NO. 2137, AS AMENDED) 1 ordinary course of business, in the sale/transfer of goods, as
proof of possession or control of the goods, or authorizing or
purporting to authorize the possessor of the document to
PURPOSE OF THE WRL transfer or receive either by indorsement or by delivery,
a. To prescribe the rights and duties of a warehouseman; goods represented by such document. (Art. 1636,NCC)
b. To regulate the relationship between a warehouseman
and the depositor of goods, or the holder of a COMMON TYPES OF DOCUMENT OF TITLE
warehouse receipts for the goods, or other persons; 1. Bill of Lading - written acknowledgement of the receipt
c. To render title to, and right of possession of, property of goods and an agreement to transport and to deliver
stored in warehouse more easily convertible; them at a specified place to a person named therein or
d. To protect those who, in good faith and for value, on his order.
acquire negotiable warehouse receipts by negotiation. a. On Board Bill of Lading – issued when
the goods have been actually placed
WAREHOUSE RECEIPT aboard the ship with very reasonable
1. It is a written acknowledgement by a warehouseman expectation that the shipment is as good
that he has received and holds certain goods therein as on its way.
described in store for the person to whom it is issued. b. Port Bill of Lading – issued by the
(Talengtan Bros. & Sons vs. CA, G.R. No. L-110581, carrier to whom the goods have been
Sept. 21, 1994) delivered and the vessel indicated in the
2. It is a simple written contract between the owner of the bill of lading by which the goods are to
goods and the warehouseman to pay the compensation be shipped is already in the port where
for that service. the goods are held for shipment.
3. It is a bilateral contract. It imports that goods are in the 2. Quedan – warehouse receipt that covers sugar.
hands of a warehouseman and is a symbolical 3. Dock Warrant – warrant given by dock owners to the
representation of the property itself. owner of merchandise imported and warehoused on the
dock, upon the faith of the bills of lading, as a
Warehouseman / Bailee –A person (natural or juridical) recognition of his title to the goods.
lawfully engaged in the business of storing goods for profit.
FUNCTIONS OF DOCUMENTS OF TITLE
WHO MAY ISSUE WAREHOUSE RECEIPTS 1. Evidence of receipt of goods;
Only a warehouseman may issue warehouse receipts to put 2. Represents the goods and therefore operates as
said warehouse receipts within the purview of the WRL. transferrable document that carries with it the control
over the goods. It is used to pass title to the goods;
FORM OF RECEIPTS; ESSENTIAL TERMS 3. It is a contract.
1. The location of the warehouse where the goods are
stored; MEANING OF NEGOTIABLE UNDER THE ACT
2. The date of issue of the receipt; It indicates that in the passage of warehouse receipts
3. Consecutive number of the receipt; through the channels of commerce, the law regards the
4. A statement whether the goods received will be property which they describe as following them and gives to
delivered to the bearer, to a specified person, or to a their regular transfer by indorsement the effect of manual
specified person or his order; delivery of the things specified in them.
5. The rate of storage charges;
6. A description of the goods or of the package containing Negotiable Warehouse Receipts - A negotiable warehouse
them; receipt is one in which it is stated that the goods received will
7. The signature of the warehouseman which may be be delivered either:
made by his authorized agent; 1. To the bearer; or
8. If the receipt is issued for goods of which the 2. To the order of any person named in such receipt. (Sec.
warehouseman is owner, either solely or jointly or in 5, WRL)
common with others, the fact of such ownership;
9. A statement of the amount of advances made and of Non-Negotiable Warehouse Receipts - A non-negotiable
liabilities incurred for which the warehouseman claims warehouse receipt is one in which it is stated that the goods
as lien. If the precise amount for such advances made received will be delivered to the depositor or to any specified
or of such liabilities incurred is, at the same time of the person.
issue of the receipt, unknown to the warehouseman or
his agent who issues it, a statement of the fact that DUPLICATE RECEIPTS MUST BE MARKED
advances have been made or liabilities incurred and the When more than one is issued for the same goods, the
purpose thereof is sufficient. word "duplicate" shall be plainly placed upon the face of
every such receipt, except the first one issued.
EFFECT OF OMISSION OF THE ESSENTIAL CONTENTS A warehouseman shall be held liable for damages for
1. A warehouseman shall be liable to any person injured failure to do so to anyone who purchased the
thereby all damages caused by the omission from a subsequent receipt for value supposing it to be original,
negotiable receipt of any of the terms herein required; even though the purchaser be after the delivery of the
2. Validity of receipt not affected; goods by the warehouseman to the holder of the
3. Negotiability of receipt not affected. original receipt.