Q: What is the Doctrine of Strict Compliance?

A: In commercial transactions involving L/C, the bank must see to it that the terms of the
L/C are strictly complied with. (Feati Bank & Trust Co. v. CA, supra)

Q: What are covered by a Warehouseman’s Lien?

A: lien on goods deposited or proceeds in his hands for:
a. all lawful charges for storage and preservation of the goods
b. all lawful claims for money advances, interest, insurance, transportation, labor,
weighing, cooperating and other charges and expenses in relation to such goods
c. all reasonable charges and expenses for notice and advertisements of sale and
for sale of the goods where default has been made in satisfying the warehouse lien

Q: What are the rights and obligations of Entruster?

A: (PROST)
1. Entitlement to proceeds from the goods, documents, or instruments.
2. Entitlement to the return of goods, documents, or instruments in case of non-sale.
3. Enforcement of all other rights conferred on him under the TRL.
4. Extent of security interest.
5. Cancel the trust at any time upon default or failure of the entrustee to comply with any of
the terms and conditions of the trust receipt or any other agreement between the
entruster and the entrustee. (TRL, Sec. 7)