THE WAREHOUSE RECEIPTS LAW Document of Title to Goods –
Any document used in the
(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, ngotiable 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. TERMS THAT CANNOT BE INCLUDED IN THE NEGOTIATION OF WAREHOUSE RECEIPTS WAREHOUSE RECEIPT A. By Delivery 1. Those contrary to any provision of the law; 1. Where by the terms of the receipt, the 2. In any wise impair the warehouseman's obligation to warehouseman undertakes to deliver the exercise that degree of care in the safekeeping of the goods to the bearer; or goods entrusted to him which a reasonably careful man 2. Where by the terms of the receipt, the would exercise with regard to similar goods of his own. warehouseman undertakes to deliver the goods to the order of a specified person, and
Prepared By: C.E.V.A
such person or a subsequent indorsee of the 2. Failure to satisfy the bailee’s lien receipt has indorsed it in blank or bearer. 3. Failure to surrender a negotiable document of title The bearer document is not always a bearer document. 4. Lack of willingness to sign acknowledgement A special indorsement has the effect of converting the 5. Delivery to a claimant with better right bearer instrument into an order instrument. 6. Where the document of title is attached by a creditor 7. Receipt by the bailee of a request by or on behalf of the B. By Indorsement Coupled with Delivery person lawfully entitled to a right of property or 1. If the receipt states that the goods are to be possession in the goods, not to make such delivery delivered to the order of a person named 8. The bailee has information that the delivery about to be therein; made was to one not lawfully entitled to the possession 2. Effects when indorsement is necessary but the of the goods negotiable receipt was only delivered: 9. Attachment/levy of the goods by a creditor where the a. The transferee acquires title against the document is surrendered or its negotiation is enjoined transferor; or the document is impounded b. There is no direct obligation of the warehouseman to deliver the goods to IN CASE OF ADVERSE CLAIM, THE BAILEE MAY: such holder of the receipt; 1. Refuse to deliver the goods to anyone of them until he c. The transferee can compel the transferor has had reasonable time to check the validity of the to complete the negotiation by indorsing claims. the instrument (Sec.43, WRL).The 2. File as action for interpleader and allow the claimants to negotiation takes effect on the date of the prove their claims or in case an action is filed against indorsement only. the bailee, he can set up the defense of adverse claims.
EFFECT OF NEGOTIATION OF WAREHOUSE RECEIPT WAREHOUSEMAN’S OBLIGATIONS
Negotiation of the document has the effect of manual A. Under the WRL delivery so as to constitute the transferee the owner of the 1. Deliver the goods upon a demand made goods. either by the holder of a receipt for the goods or depositor. RIGHTS OF A PERSON TO WHOM A RECEIPT HAS 2. Obligation to deliver arises only if the demand BEEN NEGOTIATED: is accompanied by: 1. In case of receipt negotiable by delivery, such title to a. An offer to satisfy the warehouseman’s the goods as the person negotiating the receipt to him lien; had or had ability to convey to a purchaser in good faith b. An offer to surrender the receipt, if for value; negotiable, with such indorsement as 2. In case of receipt negotiable by indorsement coupled by may be necessary for the negotiation of delivery, such title to the goods as the depositor or the receipt; and person to whose order the goods were to be delivered c. A readiness and willingness to sign, when by the terms of the receipt has or had ability to convey the goods are delivered, an to a purchaser in good faith for value; acknowledgement that they have been 3. The direct obligation of the warehouseman to hold delivered, if such signature is requested possession of the goods for him according to the terms by the warehouseman. of the receipt as fully as if the warehouseman had contracted directly with him. (Sec.41, WRL) B. Under the General Bonded Warehouse Law (Act No. 9893; R.A. 247) RIGHTS OF A PERSON TO WHOM A RECEIPT HAS 1. Secure a license from the Department of BEEN TRANSFERRED: Trade and Industry; 1. The title to the goods as against the transferor with 2. File a bond equivalent to 33 ½ % of the respect to a negotiable warehouse receipt not duly market value of maximum quantity of goods negotiated (merely steps into the shoes); to be received for the protection of the 2. The right, thereafter, to acquire the obligation of the depositors; warehouseman to hold the goods for him; and 3. Not discriminate and must open his 3. If the receipt is non-negotiable, such person acquires warehouse to the public; the right to notify the warehouseman of the transfer 4. Be liable in the amount equivalent to double thereof. (Sec. 42, WRL) the market value of the goods in case of damage to the goods because the Prior to the notification of the warehouseman by the warehouseman accepts goods in excess of transferor or transferee of a non-negotiable receipt, the title the capacity of his warehouse; and of the transferee to the goods and the right to acquire the 5. Insure the goods against fire. obligation of the warehouseman may be defeated by: 1. The levy of an attachment or execution upon the goods LIABILITY OF WAREHOUSEMAN FOR STOLEN AND by a creditor of the transferor; or DEPOSITED GOODS 2. A notification to the warehouseman by the transferor or If stolen goods are deposited by the thief with a a subsequent purchaser from the transferor of the warehouseman, the latter shall not be liable to the holder of subsequent sale of the goods by the transferor. the receipt even if he delivers the goods to the real owners But- without the receipt being surrendered to him. (Sec.11 and -unpaid seller’s lien or right of stoppage in 141, WRL) transitu cannot defeat the right of the holder in good faith of NWR. WAREHOUSEMAN’S LIEN -Goods covered by NWR cannot be attached or A warehouseman shall have a lien on the goods deposited levied upon unless receipt is surrendered. or on the proceeds thereof in his hands for: 1. All lawful charges for storage and preservation of the WAREHOUSEMAN’S DEFENSES FOR NON-DELIVERY goods; OR MISDELIVERY 2. All lawful claims for money advanced, interest, 1. Loss or destruction of the goods without the fault of the insurance, transportation, labor, weighing, coopering, bailee
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and other charges and expenses in relation to such transfer without a receipt of the goods represented goods; and thereby. (Sec. 44, WRL) 3. All reasonable charges and expenses for notice and advertisements of sale, and for the sale of the goods where default had been made in satisfying the REVIEW QUESTIONS1 warehouseman’s lien. BQ (1999) REMEDIES OF A WAREHOUSEMAN TO ENFORCE HIS A Warehouse Company received for safekeeping LIEN 1,000 bags of rice from a merchant. To evidence the 1. Refuse to deliver the goods until his lien is satisfied transaction, the Warehouse Company issued a receipt (Sec. 31, WRL); expressly providing that the goods be delivered to the 2. Sell the goods and apply the proceeds thereof to the order of said merchant. value of the lien (Sections 33 & 34, WRL); A month after, a creditor obtained judgment 3. By other means allowed by law to a creditor against his against said merchant for a sum of money. The sheriff debtor (Sec. 32, WRL); proceeded to levy on the rice and directed the 4. Such other remedies allowed by law for the Warehouse Company to deliver to him the deposited enforcement of a lien against personal property (Sec. rice. 35, WRL). Q1:What advice will you give the Warehouse Company. Explain your answer. LOSS OF LIEN Q2:Assuming that a week prior to the levy, the Warehouseman’s lien is lost either by: receiptwas sold to a rice mill on the basis of which it 1. Surrendering possession thereof; or filed a claim with the sherill. Would the rice mill 2. Refusing to deliver the goods when a demand is made have better rights to the rice than the creditor? with which he is bound to comply (Sec. 29, WRL). A1: The 1,000 bags of rice were delivered to the Warehouse Company by a merchant, and a Note: When warehouseman withholds the delivery of the negotiable receipt was issued therefor. The rice goods without any valid reason, he is liable for the loss of the cannot thereafter, while in the possession of the goods and the liability cannot be eliminated by proof of Warehouse Company, be attached by garnishment exercise of due diligence. or otherwise, or be levied upon under an execution unless the receipt be first surrendered to the ATTACHMENT OR LEVY warehouseman, or its negotiation enjoined. The Negotiable receipt – the goods cannot be Warehouse Company cannot be compelled to attached/levied in execution unless: deliver the actual possession of the rice until the 1. The receipt is first surrendered receipt is surrendered to it or impounded by the 2. Its negotiation is enjoined court. 3. The receipt is impounded by the court (Sec. 25, A2: Yes. The rice mill, as holder for value of the receipt, WRL) has a better right to the rice than the creditor. It is the rice mill that can surrender the receipt which is Creditor's Remedies To Reach Negotiable in its possession and can comply with the other Receipt: requirements which will oblige the warehouseman A creditor whose debtor is owner of a to deliver the rice, namely, to sign a receipt for the negotiable warehouse receipt may seek for delivery of the rice, and to pay the warehouseman’s the attachment of the receipt or seek aid from liens and fees and other charges. the courts to compel the debtor to satisfy claims by means allowed by law in regard to ***** property which cannot readily be attached or BQ (2005) levied upon by ordinary legal process. (Sec. Jojo deposited several cartons of goods with SN 26, WRL) Warehouse Corporation. The corresponding warehouse receipt was issued to the order of Jojo. He endorsed It does not apply when: the warehouse receipt to EJ who paid the value of the 1. The depositor is not the owner of the goods deposited. Before EJ could withdraw the goods, goods (thief) or one who has no right to Melchor informed SN Warehouse Corporation that the convey title to the goods binding upon goods belonged to him snd were taken by Jojo without the owner; his consent. Melchor wants to get the goods, but EJ 2. The action for recovery or manual also wants to withdraw the same. delivery of goods by the real owner; Q1: Who has a better right to the goods? Why? 3. Where attachment is made prior to the Q2: If SN Warehouse Corporation is uncertain as to issuance of receipt. who is entitled to the property, what is the proper Non-negotiable – the goods can be attached, provided recourse of the corporation? Explain. it is done prior to the notification of the bailee of the A1: EJ has better right to the goods. The goods are transfer. (Sec. 42, WRL) covered by a negotiable warehouse receipt which was indorsed to EJ for value. The negotiation to WARRANTIES OF TRANSFEROR EJ was not impaired by the fact that Jojo took the A person who, for value, negotiates or transfers a receipt by goods without the consent of Melchar, as EJ had indorsement or delivery, including one who assigns for value no notice of such fact. Moreover, EJ is in a claim secured by a receipt, unless a contrary intention possession of the warehouse receipt and only he appears, warrants that: can surrender it to the warehouseman. (Sec. 8, 1. The receipt is genuine; WRL) 2. He has a legal right to negotiate or transfer it; A2: Since there are conflicting claims of ownership of 3. He has knowledge of no fact which would impair the title, SN Warehouse Corporation should file a validity or worth of that receipt; complaint in interpleader. The matter involves a 4. He has a right to transfer the title to the goods; and judicial question as to whose claim is valid. 5. The goods are merchantable or fit for a particular purpose whenever such warranties would have been implied, if the contract of the parties had been to
Prepared By: C.E.V.A
BQ (2007) 3. Suppose instead of claiming the goods himself, M Alex deposited goods for which Billy, a warehouseman, indorses the receipt in blank to N. O, sees this and issued a negotiable warehouse receipt wherein the waits for an opportunity to steal the receipt. O goods were delivered to Alex or order. Alex negotiated succeeds and got to Y, demanding the goods. A the receipt to Caloy. Thereafter, Dario, a creditor, few minutes before, however, Y was informed that secured judgment against Alex and served notice of Warehouse Receipt No. 00021 had been stolen. levy over the goods on the warehouseman. Should Y deliver the goods to O? Explain. Q1: To whom should the warehouseman deliver the A: No. Y should not deliver the goods to O. If Y goods upon demand? were to deliver the goods to O, Y could be liable Q2: Would your answer be the same if the for misdelivery under Sec. 10, WRL, as Y had warehouseman issued a non-negotiable information that the delivery about to be made was warehouse receipt? Reason briefly. to one not lawfully entitled to the possession of the A1: The warehouseman should deliver the goods to goods. Y, being aware of the theft, is justified in Caloy. The goods cannot be attached by refusing delivery to O. garnishment or otherwise, or levied upon, unless the receipt be first surrendered to the warehouseman, or its negotiation is enjoined. I. Nature and Function2 (Sec. 25, WRL) 1. One of these statements is not correct: A2: No. The non-negotiable warehouse receipt does a) A warehouse receipt serves as proof of not confer upon the transferee the direct obligation possession of the warehouseman of the goods of the warehouseman to hold possession of the described in it and as authorization for the goods for him. (Sec, 42, WRL). In such a case, the possessor of the warehouse receipt to transfer law provides that when a non-negotiable or receive the goods described in it. warehouse receipt is transferred to Caloy, he only b) A non-negotiable receipt is one in which it is gets such title to the goods as alex had and aso a stated that the goods received will be delivered right to notify the warehouseman to hold the goods to the depositor or to any other specified for Caloy’s account. Prior to such notice, Caloy’s person. claim can be defeated by a levy of execution upon c) A negotiable receipt is a receipt in which it is the goods by a creditor of Alex. stated that the goods received will be delivered to the bearer or to the order of any person ***** named in the receipt. Q: Coco was issued by a warehouseman a negotiable d) A warehouse receipt is not a document of title receipt for safekeeping by the latter of his goods. Can the judgment creditor of Coco levy by execution the goods 2. One of these statements is not correct: covered by the negotiable receipt? a) When a negotiable instrument is altered, it A: The goods cannot, while in the possession of the becomes null and void. When a negotiable warehouseman, be attached by garnishment or otherwise, or warehouse receipt is altered, it is still valid but be levied upon under an execution unless the receipt be first may be enforced only in accordance with its surrendered to the warehouseman, or its negotiation original tenor. enjoined. The warehouseman cannot be compelled to b) A negotiable instrument which is originally deliver the actual possession of the goods until the receipt is payable to bearer remains so payable even if it surrendered to it or impounded by the court. is indorsed specially. A negotiable receipt deliverable to bearer if indorsed specially ***** becomes deliverable to order. Q. X deposits his goods in Y's warehouse, for which Y c) The holder in due course of a negotiable issues Warehouse receipt No. 00021 which stated that the instrument may be able to obtain a title better goods received will be delivered to the bearer or to the order than that of the indorser. An indorsee of a of any person named in such receipt. negotiable receipt acquires only such title as the 1. Suppose X negotiates the warehouse receipt to Z, person who negotiated had over the goods can Z convert the receipt to a non-negotiable even if he is a holder in due course. warehousr receipt by writing on its face the word d) Both in a negotiable instrument and in a "non-negotiable"? negotiable receipt the indorser warrants that all A: No. Z cannot conver the receipt in that manner. prior parties had capacity to contract. According to Section 5 of the WRL, a negotiable warehouse receipt cannot be converted into a non-negotiable warehouse receipt by inserting any II. Duties of Warehouseman provision in the negotiable receipt that it is non- A. Delivery of Goods negotiable. 1. One of these is not required to bind the 2. X negotiates the warehouse receipt to M. M, in warehouseman to deliver the goods: claiming the goods covered by the receipt, does a) An offer to satisfy his lien. not bring with him the receipt, but simply makes an b) An offer to surrender the receipt, if it is oral demand on Y and nothing more. Can Y validly negotiable, with indorsements necessary for refuse to deliverthe goods? Explain. its negotiation. A: Yes, Y can validly refuse to deliver the goods. c) A readiness and willingness to sign upon The warehouseman is bound to deliver the goods upon demand either by the holder of a receipt for delivery of the goods, an acknowledgment the goods or by the depositor, provided that such that they have been received, if the demand is accompanied by: warehouseman requests it. a. an offer to satisfy the warehouseman ‘lien; d) An undertaking to hold the warehouseman b. an offer to surrender the receipt if it is harmless from claims of third parties. negotiable, and c. a readiness and willingness to sign an acknowledgement, when the goods are 2. A warehouseman is not justified in delivering delivered, that they have been dleivered if the goods to one of the following: such is requested by the warehouseman. a) The person lawfully entitled to the possession of the goods or his agent.
Prepared By: C.E.V.A
b) A person entitled to the delivery by the terms lawful charges for storage and preservation of of the non-negotiable receipt for goods or has the goods, for all lawful claims in relation to the written authority from such person. goods, for all reasonable charges and expenses c) A person in possession of a negotiable for notice and advertisement for sale, and for receipt for goods deliverable to him or his sale of the goods. order or to bearer, which has been indorsed b) If the receipt is negotiable, the warehouseman to him or in blank by the person to whom will have no lien on the goods except charges delivery was promised or by his indorsee. for storage, unless the receipt expressly d) The pledgee of the goods covered by the enumerates other charges for which a lien is receipt. claimed. c) A warehouseman has a lien against all goods 3. One of these statements is not correct: belonging to the person liable for the claims with a) The general rule is that a warehouseman respect to which a lien is asserted. cannot invoke the right or title of a third d) A warehouseman cannot have a lien against the person as an excuse for not delivering the goods if the depositor was merely entrusted goods covered by a receipt. with its possession, even if the warehouseman b) By way of exception, the warehouseman may acted in good faith and for value. withhold delivery until he has had reasonable opportunity to ascertain the validity of the B. Enforcement of Warehouseman’s Lien claim of the third party or to file an action for 1. One of these statements is not correct: interpleader. a) A warehouseman’s lien may be satisfied by c) If the goods were lawfully sold to satisfy the selling the goods. lien of the warehouseman or were lawfully b) The warehouseman must give the person for sold or disposed of because of their whose account he is holding the goods or any perishable or hazardous nature, the other person he knows to claim an interest in warehouseman is not liable for not delivering the goods notice to pay within ten days. them. c) If the warehouseman is not paid, an d) If the warehouse receipt was fraudulently advertisement of the sale must be published altered, the warehouseman will be once a week for three consecutive weeks in a discharged from liability to deliver the goods. newspaper published in the place of the sale. d) The sale cannot be made less than 15 days 4. One of these statements is not correct: before the date of the first publication. a) A warehouseman cannot set up title in himself as an excuse for refusing to deliver 2. One of these statements is not correct: the goods unless the title is directly or a) If there is no newspaper published in the place indirectly from a transfer by the depositor or of the sale, the advertisement must be posted at from enforcement of his lien. least 10 days before the sale in six conspicuous b) If a warehouseman delivers goods covered places. by a warehouse receipt and does not take up b) A sale held without complying with the and cancel it, he will be liable to anyone who publication and before the prescribed time is purchases the warehouse receipt in good void. faith and for value. c) In case of deficiency in the proceeds of the sale, c) If a warehouseman delivers a part of the the warehouseman cannot sue for the goods for which he issued a negotiable deficiency. receipt and did not take up and cancel the d) If the proceeds of the sale exceed the amount receipt or state plainly upon it what goods due the warehouseman, the excess shall be were delivered, he will be liable to anyone delivered to the person entitled to the delivery of who purchased the receipt in good faith and the goods. for value. d) A warehouseman is not liable to the holder of IV. Negotiation and Transfer of Warehouse Receipts a receipt if the goods do not correspond with A. Negotiation the description in it. 1. One of these statements is not correct: a) A negotiable receipt may be negotiated by delivery if by its terms the goods are deliverable B. Safekeeping of the Goods to the bearer or by its terms the goods are 1. One of these statements is not correct: deliverable to the order of a specified person a) A warehouseman is liable for any loss or and he or a subsequent indorsee indorsed the injury to the goods caused by his failure to receipt in blank or to bearer. exercise such care as a reasonably careful b) If the goods are deliverable to bearer or the owner would exercise. negotiable receipt was indorsed in blank or to b) In the absence of a stipulation to the contrary, bearer, even if the holder indorsed it to himself the warehouseman is not liable for any loss or a specified person, the receipt can be or injury to the goods which could not have negotiated further by delivery. been avoided by exercise of such care. c) The warrant of a negotiable receipt by the c) A warehouseman is not liable for loss due to person to whose order the goods are a fortuitous event. deliverable may be in blank, to bearer, or to a d) The person claiming the goods has the specified person. burden of proving the loss was due to the d) Subsequent negotiations may be made in the fault of the warehouseman. same manner.
III. Warehouseman’s Lien 2. One of these statements is not correct:
A. Claims Included and Properties Covered a) A negotiable receipt may be negotiated by the 1. One of these statements is not correct: owner. a) A warehouseman has a lien on the goods b) If by the terms of a negotiable receipt, the deposited or their proceeds in his hands for all goods are deliverable to the order of the person
Prepared By: C.E.V.A
to whose possession the owner of the receipt entrusted it, such person cannot negotiate the DEFINITION OF TERMS3 receipt. c) A person to whom a negotiable receipt was "action" includes counterclaim and set-off; negotiated acquires such title to the goods as the person negotiating had ability to convey to a buyer in good faith and for value. "fungible goods" means goods of which any unit is, from its d) A person to whom a negotiable receipt was nature or by mercantile custom, treated as the equivalent of negotiated acquires the direct obligation of the any other unit; warehouseman to hold the goods for him. "goods" includes all chattels personal other than things in 3. One of these statements is not correct: action and money; a) The negotiation of a negotiable receipt is not impaired by the fact that it was a breach of duty "holder", as applied to a negotiable receipt, means a person of the person negotiating it or that the owner of who has possession of the receipt and a right of property the receipt was induced by fraud, mistake or therein, and, as applied to a non-negotiable receipt, means a duress to entrust the receipt to such person if person named therein as the person to whom the goods are the person to whom it was negotiated took it in to the delivered or his transferee; good faith and for value. b) If a person who sold goods covered by a negotiable receipt remained in possession of it, "negotiable receipt" means a receipt in which it is stated the negotiation of the receipt to a person who that the goods therein specified will be delivered to bearer or took it in good faith and for value has the same to the order of a named person; effect as if the first buyer had authorized the negotiation. "non-negotiable receipt" means a receipt in which it is c) A seller’s lien or right of stoppage in transitu will stated that the goods therein specified will be delivered to defeat the rights of a buyer in good faith and for the holder thereof; value to whom the receipt was negotiated. d) If a warehouseman who sold sugar covered by "purchase" includes to take as mortgagee or as pledgee; a negotiable receipt was not paid by the buyer, the negotiation of the receipt by the buyer is valid. "purchaser" includes mortgagee and pledgee;
B. Transfer of Rights "receipt" means a warehouse receipt;
1. One of these statements is not correct: a) A non-negotiable receipt may not be transferred "warehouse receipt" means an acknowledgment in writing by delivery. by a warehouseman of the receipt for a storage of goods not b) The negotiation of a non-negotiable receipt his own; does not give the transferee any additional right. c) A person to whom a non-negotiable receipt was "warehouseman" means a person who received goods for transferred acquires as against the transferor storage for reward. R.S., c. 333, s. 1. title to the goods subject to their agreement. d) A person to whom a non-negotiable receipt was transferred acquires the right to notify the warehouseman of the transfer to him and to acquire the direct obligation of the warehouseman to hold the goods for him. 1. “The Warehouse Receipts Law”. Retreived: Dec 14,2013 from http://credit- trans.blogspot.com/2012/09/warehouse-recepts-law.html 2. One of these statements is not correct: 2. “Bar Reviewer In Mercantile Law”. Retreived: Dec 14,2013 from https://www.google.com.ph/url? a) Before the notification to the warehouseman, sa=t&rct=j&q=&esrc=s&source=web&cd=5&cad=rja&ved=0CEEQFjAE&url=ht tp%3A%2F%2Fxa.yimg.com%2Fkq%2Fgroups the title of the transferee to the goods maybe %2F22047546%2F1652942981%2Fname%2FMercantile defeated by a levy upon them by a creditor of %2BLaw.doc&ei=v_SrUpa4B4TYigeLloCYAg&usg=AFQjCNEtmGu_M2_ezlR the goods. e_i9KQ-b6fh7YYg&bvm=bv.57967247,d.aGc b) Before the notification to the warehouseman, 3. “Warehouse Receipts Act”. Retrieved:Dec 14, 2013 from the title of the transferee to the goods may be http://nslegislature.ca/legc/statutes/warerec.htm defeated by a notification to the warehouseman of a subsequent sale of the goods. c) If a negotiable receipt is transferred for value by delivery and indorsement is necessary for its negotiation, the transferee can compel the transferor to indorse it. d) The effect of the negotiation will retroact to the date of the transfer of the receipt.