Documents of Title Flashcards
A document used in the ordinary course of
business in the sale or transfer of goods, as
proof of the possession or control of the
goods, or authorizing or purporting to
authorize the possessor of the document to
transfer or receive, either by endorsement or
by delivery, goods represented by such
document.
Documents of Title
(3) Purpose of documents of title
- As evidence of possession or control of goods.
- As a medium of transferring title and possession over the goods described therein without having to effect actual delivery thereof
- As a medium of transferring title and possession over the goods described
therein without having to effect actual delivery thereof
A document of title which states that the
goods referred to therein will be delivered to
the bearer, or to the order of any person
named in such document.
Negotiable documents of title
Terms of the document:
-Goods are deliverable to bearer.
-Endorsed in blank by the person to whose order the goods were supposed to be delivered.
-Goods are deliverable to the order of a specified person.
How the document of title is negotiated (2):
-By delivery
-By indorsement
Who can negotiate the document:
-Owner
-Person to whom the possession or
custody of the document has been
entrusted by the owner
A person to whom a document has been
negotiated acquires:
(1) Title of person negotiating the document, over goods covered by document
(2) Title of depositor/owner over such goods
(3) Direct obligation of bailee/carrier to hold possession of goods for him
Goods described in a _________________________ are deliverable only to a
specified person.
non-negotiable
document of title
A person to whom a document has been
negotiated acquires:
(1) Title to goods as against the transferor
(2) Right to notify the bailee of the transfer thereof
(3) Right, thereafter, to acquire the obligation of the to hold goods for him
A person who negotiates a document of title warrants:
(1) The genuineness of document
(2) The legal right to negotiate or transfer
(3) That there is no knowledge of any fact which would impair the validity or worth of the document
(4) The right to transfer the title to the goods and merchantability or fitness for a
particular purpose, whenever such warranties would have been implied
A person who negotiates a document of title does not warrants:
(1) Common carrier will fulfill its obligation to deliver the goods
(2) Previous endorsers will fulfill their obligation
Goods in the hands of the carrier covered by a negotiable document cannot be attached or levied upon, unless:
(1) Document is first surrendered to the carrier; or
(2) Impounded by the court; or
(3) Its negotiation is enjoined.
Goods in the hands of the carrier covered by a negotiable document cannot be attached or levied upon, unless:
(1) Document is first surrendered to the carrier; or
(2) Impounded by the court; or
(3) Its negotiation is enjoined.
The levy of an attachment of execution upon the goods by a creditor of the transferor, may defeat the title of the transferee and the right to acquire the obligation of such bailee, when:
(1) It was done prior to the notification to such bailee by the transferor of a nonnegotiable document of title or
(2) By a notification to such bailee by the transferor or a subsequent purchaser
from the transferor of a subsequent sale of the goods by the transferor.
A creditor whose debtor is the owner of a negotiable document of title shall be ________ to such aid from courts in regard to property which cannot be readily attached or levied by ordinary legal process.
entitled
