What is the effect of the failure of the warehouseman to
DAY 04 & 05 – WAREHOUSE RECEIPTS LAW
REVIEWER
By: Jerry W. Tongzon
Can a duly authorize officer or agent validly issue a
warehouse receipt?
As a general rule, Warehouse receipts may be
issued by any warehouseman. But a duly
authorized officer or agent of a warehouseman
may validly issue a warehouse receipt.
What is the effect of the omission of any of the
requirement in the validity of a warehouse receipt?
The omission of any of the requirement will not
affect the validity of a warehouse receipts. It
will only render the warehouseman liable for
damages for those injured by his omission and
neither is negotiability affected.
Is the warehouseman given the power to insert
additional conditions in the warehouse receipt issued
by him?
Yes. The warehouseman is given the power to
insert additional term and condition in receipts
issued by him subject to the two limitations;
a.) He cannot insert any terms which
is contrary to the provisions of
warehouse receipts law or any terms
which is contrary to law, good custom,
public order or public policy.
b.) He cannot insert any term which
would relieved him from liability for
his own negligence such as for
account and at the risk for the
depositor.
Because the warehouseman is required by law to
exercise that degree of care in the safekeeping of
the goods in trusted to him which a reasonable
care a careful man would exercise in regard to
similar goods of his own.
What do you mean by a negotiable warehouse
receipt?
It is a receipt in which it is stated that the goods
received will be delivered to the bearer or to the
order of any person named in such receipt.
What do you mean by a non-negotiable warehouse
receipt?
A receipt in which it is stated that the goods
received will be delivered to the depositor or to
any other specified person, is a non-negotiable
receipt.   protect the warehouseman from any liability.
mark negotiable in the case of a negotiable warehouse
receipts?
What is the effect of the failure of the warehouseman to
mark non-negotiable in the case of a non-negotiable
warehouse receipts?
What are the obligations of a warehouseman?
1. To take care of the goods entrusted to his
safekeeping.
2. To deliver the goods to the holder of the
receipt or the depositor provided there is
demand by the depositor accompanied by
either:
a. An offer to satisfy the warehouseman’s lien
b. An offer to surrender the receipt, if negotiable.
c. Readiness and willingness to sign, if such
signature is requested by the warehouseman
as acknowledgement.
3. To keep the goods separate from the goods of other
depositors, except if authorized by agreement or by
custom, fungible goods may be mingled with other
goods of the same kind and grade.
If the receipt issued was non-negotiable would the
warehouseman be justified in requiring its surrender
before the delivery of the goods subject thereof?
No. The surrendering of receipt only applies to
a negotiable receipt. There is no requirement
with respect to a non-negotiable warehouse
receipt.
Under the law, if the receipt is negotiable the
demand for the delivery goods must be an
accompanied to an offer to surrender the receipt
properly endorsed.
If the receipt issued is not negotiable. Any
person lawfully entitled the possession of the
goods maybe entitled to the delivery without
surrender of the receipt.
If the warehouse receipt is lost or destroyed would the
warehouseman be liable for misdelivery if he releases
the goods by the presentation of an affidavit of lost?
Yes. The warehouseman is liable.
Under the law, where a warehouse receipts has
been lost or destroyed, a court of competent
jurisdiction may order the delivery of the goods
upon satisfactory proof of such loss or
destruction and upon the giving of a bond with
sufficient sureties to be approved by the court to
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Thus, presentation of an affidavit of lost is not
sufficient.
Does the warehouseman have the right of retention?
On what ground?
Yes, the warehouseman has the right of
retention over the goods.
Under the law, a warehouseman can refuse to
deliver the goods until his lien is satisfy this
includes the following;
1. All lawful charges for storage and preserv
ation of the goods
2.   All    lawful    claims    for    money    Under the law, by issuing a duplicate receipts
advanced—Interests, insurance, transportation,
labor, weighing, cooperating and other charges
and expenses in relation to the goods
3.   All reasonable charges   and expenses   on the warehouseman.
for notice  and advertisements of sale
4.   Claimants can file in court for another copy to
Sale of goods where default has been made in  prove such lost.
satisfying warehouseman’s lien 
As a general rule in case the warehouseman comingles
goods belonging to different depositors is this
allowed?
As a general rule, a warehouseman is not
allowed to mingle goods belonging to the
depositors.
In case of fungible goods like rice and sugar.
The warehouseman may mingle them with the
same kind and quality provided that he is
authorized by agreement or custom.
In that case, the different owners become co-
owners of the whole mass.
What is the duty of the warehouseman if there is a
conflicting claim?
Under the law, For the protection of the
warehouseman he has to file a case for
interpleader for the claimants to litigate among
themselves.
In such case, the warehouseman will be relieved
from liability for the decision of the court for
whom who has the better right.
The warehouseman will be liable and guilty for
conversion if he refuses to deliver and did not
interpleads to the rightful owner upon his refusal
after the lapse of reasonable time upon the date
of the original demand of the goods.
Can the warehouseman set up title in himself as an
excuse for his failure or refusal to deliver the goods?
As a general rule, Warehouseman cannot set up
title in himself. The warehouseman is entitled or
right to the goods derived directly or indirectly
from a transfer made by the depositor at the
time of or subsequent deposit for storage. He
shall be excuse from liability for refusing to
deliver the goods according to the terms of the
receipt.
Set 2
Can the warehouseman be compel to deliver the goods
by the presentation of the duplicate copy of the
warehouse receipt?
No, the warehouseman cannot be compelled to
deliver.
the warehouseman warrants that the duplicate
is an accurate copy of the original receipt and
such original receipt is uncancelled at the date
of issue of that duplicate. It imposes no liability
What is the liability of the warehouseman in case he
failed to mark duplicate on a duplicate warehouse
receipts?
Under the law, when more than one negotiable
receipt is issued for the same goods, the word
"duplicate" shall be plainly placed upon the
face of every such receipt, except the first one
issued.  
A warehouseman shall be liable for all
damages caused by his failure make it
duplicate on one who purchased the
subsequent receipt for value supposing it to be
an original, even though the purchase be after
the delivery of the goods by the warehouseman
to the holder of the original receipt.
If the warehouseman delivers the goods to his
possession despite the fact that he has a lien thereon,
would that constitute a waiver on his claim against the
depositor?
No. it will not constitute a waiver on his claim
against the depositor. The delivery of the goods
only losses his LIEN.
The warehouseman can file a civil action for the
collection of the unpaid charges in this case.
If the depositor does not surrender the warehouse
receipts would the warehouseman be justified in not
delivering the goods subject thereof?
Under the law, if the receipt is negotiable the
demand for the delivery goods must be an
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 accompanied to an offer to surrender the receipt
properly endorsed.
If the receipt issued is not negotiable. Any
person lawfully entitled the possession of the
goods maybe entitled to the delivery without
surrender of the receipt.
The reasons why a warehouseman refuses to
deliver the goods if the goods covering by
negotiable warehouse receipts is not
surrendered and cancelled.
a. He would be liable to the person who
acquired that negotiable receipts
b. he would be criminally liable.
Can the warehouseman acquire title to the goods
through acquisitive prescription?
No. The law expressly provides that, the
warehouseman cannot setup adverse title
through acquisitive prescription for himself as
an excuse for his refusal or failure to deliver the
goods except;
a. such title or right is derived directly or
indirectly from a transfer made by the
depositor at the time of or subsequent to
the deposit for storage, or from the
warehouseman's lien.
b. Interpleader of adverse claimants
c. Lawful sale or disposal of goods because
of their perishable or hazardous nature
Can the goods in the possession of a warehouseman be
subject to attachment or levy?
Yes, if the goods are covered by a non-
negotiable warehouse receipts.
However, if goods covered by a negotiable
warehouse receipt it cannot be levied or
attached by the court unless;
1. The document be first surrendered
2. Or the negotiation is enjoined
3. Or the document is impounded by the
court
Because this is to protect third person who
will acquire negotiable receipt. So that the
document will not be negotiated anymore and
pass to other person.
How is the lien of a warehouseman lost?
Under the law, a warehouseman loses his lien
upon goods on the following:
(a) By surrendering possession thereof, or
(b) By refusing to deliver the goods when a
demand is made with which he is bound to
comply under the law.
What are the remedies available to a warehouseman
in imposing his lien?
The law provides of the following remedies to a
warehouseman to enforce his lien;
1. By refusing to deliver the goods until the lien
is satisfied
2. Causing the extra judicial sale of the property
applying the proceeds of the value of the lien
3. Or the warehouseman can file a civil action
for the collection of the unpaid charges.
4. Or by way of counterclaiming in action to
recover the property from him
5. Or such other remedy allowed by law for the
enforcement of the lien against the personal
property to a creditor against his debtor for
the collection of the depositor of the charges
against the depositor is bound to pay.
If the goods are punishable in nature would the sale
be null and void if the notice thereof was not
published in the newspaper of general circulation?
No. the sale will not render null and void.
Under the law, if goods are of a perishable
nature, or by keeping will deteriorate greatly in
value, or would cause danger and injury to other
property. The warehouseman may;
a. give such notice to the owner, as is reasonable
and possible under the circumstances,
b. to remove them from the warehouse and sell the
goods at public or private sale without
advertising in the event of failure to satisfy lien.  
c. If the warehouseman, after a reasonable effort, is
unable to sell such goods, he may dispose of
them in any lawful manner and shall incur no
liability by reason thereof.
What is the required care that the warehouseman
must exercise over the goods deposited in his
warehouse?
The warehouseman is required by law to
exercise that degree of care as a “good father of
the family” in the safekeeping of the goods in
trusted to him which a reasonable care a careful
man would exercise in regard to similar goods
of his own.
What is the representation or warranty of a duplicate
receipt so mark?
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