Professional Documents
Culture Documents
When more than one 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.
the
the
the
the
and
2.
3.
4.
5.
6.
7.
8.
9.
2.
WAREHOUSEMANS OBLIGATIONS
A.
Under the WRL
1.
Deliver the goods upon a demand made
either by the holder of a receipt for the goods
or depositor.
2.
Obligation to deliver arises only if the demand
is accompanied by:
a. An offer to satisfy the warehousemans
lien;
b. An offer to surrender the receipt, if
negotiable, with such indorsement as
may be necessary for the negotiation of
the receipt; and
c. A readiness and willingness to sign, when
the
goods
are
delivered,
an
acknowledgement that they have been
delivered, if such signature is requested
by the warehouseman.
B.
3.
goods without any valid reason, he is liable for the loss of the
goods and the liability cannot be eliminated by proof of
exercise of due diligence.
ATTACHMENT OR LEVY
WARRANTIES OF TRANSFEROR
A person who, for value, negotiates or transfers a receipt by
indorsement or delivery, including one who assigns for value
a claim secured by a receipt, unless a contrary intention
appears, warrants that:
1. The receipt is genuine;
2. He has a legal right to negotiate or transfer it;
3. He has knowledge of no fact which would impair the
validity or worth of that receipt;
4. He has a right to transfer the title to the goods; and
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
REVIEW QUESTIONS1
BQ (1999)
A Warehouse Company received for safekeeping
1,000 bags of rice from a merchant. To evidence the
transaction, the Warehouse Company issued a receipt
expressly providing that the goods be delivered to the
order of said merchant.
A month after, a creditor obtained judgment
against said merchant for a sum of money. The sheriff
proceeded to levy on the rice and directed the
Warehouse Company to deliver to him the deposited
rice.
Q1:What advice will you give the Warehouse Company.
Explain your answer.
Q2:Assuming that a week prior to the levy, the
receiptwas sold to a rice mill on the basis of which it
filed a claim with the sherill. Would the rice mill have
better rights to the rice than the creditor?
A1: The 1,000 bags of rice were delivered to the
Warehouse Company by a merchant, and a
negotiable receipt was issued therefor. The rice
cannot thereafter, while in the possession of the
Warehouse Company, be attached by garnishment
or otherwise, or be levied upon under an execution
unless the receipt be first surrendered to the
warehouseman, or its negotiation enjoined. The
Warehouse Company cannot be compelled to
deliver the actual possession of the rice until the
receipt is surrendered to it or impounded by the
court.
A2: Yes. The rice mill, as holder for value of the receipt,
has a better right to the rice than the creditor. It is
the rice mill that can surrender the receipt which is
in its possession and can comply with the other
requirements which will oblige the warehouseman
to deliver the rice, namely, to sign a receipt for the
delivery of the rice, and to pay the warehousemans
liens and fees and other charges.
*****
BQ (2005)
Jojo deposited several cartons of goods with SN
Warehouse Corporation. The corresponding warehouse
receipt was issued to the order of Jojo. He endorsed
the warehouse receipt to EJ who paid the value of the
goods deposited. Before EJ could withdraw the goods,
Melchor informed SN Warehouse Corporation that the
goods belonged to him snd were taken by Jojo without
his consent. Melchor wants to get the goods, but EJ
also wants to withdraw the same.
Q1: Who has a better right to the goods? Why?
Q2: If SN Warehouse Corporation is uncertain as to
who is entitled to the property, what is the proper
recourse of the corporation? Explain.
A1: EJ has better right to the goods. The goods are
covered by a negotiable warehouse receipt which
was indorsed to EJ for value. The negotiation to
EJ was not impaired by the fact that Jojo took the
goods without the consent of Melchar, as EJ had
no notice of such fact. Moreover, EJ is in
possession of the warehouse receipt and only he
can surrender it to the warehouseman. (Sec. 8,
WRL)
A2: Since there are conflicting claims of ownership of
title, SN Warehouse Corporation should file a
complaint in interpleader. The matter involves a
judicial question as to whose claim is valid.
BQ (2007)
Alex deposited goods for which Billy, a warehouseman,
issued a negotiable warehouse receipt wherein the
goods were delivered to Alex or order. Alex negotiated
the receipt to Caloy. Thereafter, Dario, a creditor,
secured judgment against Alex and served notice of
levy over the goods on the warehouseman.
Q1: To whom should the warehouseman deliver the
goods upon demand?
Q2: Would your answer be the same if the
warehouseman
issued
a
non-negotiable
warehouse receipt? Reason briefly.
A1: The warehouseman should deliver the goods to
Caloy. The goods cannot be attached by
garnishment or otherwise, or levied upon, unless
the receipt be first surrendered to the
warehouseman, or its negotiation is enjoined.
(Sec. 25, WRL)
A2: No. The non-negotiable warehouse receipt does
not confer upon the transferee the direct obligation
of the warehouseman to hold possession of the
goods for him. (Sec, 42, WRL). In such a case, the
law provides that when a non-negotiable
warehouse receipt is transferred to Caloy, he only
gets such title to the goods as alex had and aso a
right to notify the warehouseman to hold the goods
for Caloys account. Prior to such notice, Caloys
claim can be defeated by a levy of execution upon
the goods by a creditor of Alex.
3.
I.
*****
Q: Coco was issued by a warehouseman a negotiable
receipt for safekeeping by the latter of his goods. Can the
judgment creditor of Coco levy by execution the goods
covered by the negotiable receipt?
A: The goods cannot, while in the possession of the
warehouseman, be attached by garnishment or otherwise, or
be levied upon under an execution unless the receipt be first
surrendered to the warehouseman, or its negotiation
enjoined. The warehouseman cannot be compelled to
deliver the actual possession of the goods until the receipt is
surrendered to it or impounded by the court.
*****
Q. X deposits his goods in Y's warehouse, for which Y issues
Warehouse receipt No. 00021 which stated that the goods
received will be delivered to the bearer or to the order of any
person named in such receipt.
1. Suppose X negotiates the warehouse receipt to Z,
can Z convert the receipt to a non-negotiable
warehousr receipt by writing on its face the word
"non-negotiable"?
A: No. Z cannot conver the receipt in that manner.
According to Section 5 of the WRL, a negotiable
warehouse receipt cannot be converted into a
non-negotiable warehouse receipt by inserting any
provision in the negotiable receipt that it is nonnegotiable.
2. X negotiates the warehouse receipt to M. M, in
claiming the goods covered by the receipt, does
not bring with him the receipt, but simply makes an
oral demand on Y and nothing more. Can Y validly
refuse to deliverthe goods? Explain.
A: Yes, Y can validly refuse to deliver the goods.
The warehouseman is bound to deliver the goods
upon demand either by the holder of a receipt for
the goods or by the depositor, provided that such
demand is accompanied by:
a.
b.
c.
II.
Duties of Warehouseman
A. Delivery of Goods
1. One of these is not required to bind the
warehouseman to deliver the goods:
a) An offer to satisfy his lien.
b) An offer to surrender the receipt, if it is
negotiable, with indorsements necessary for
its negotiation.
c) A readiness and willingness to sign upon
delivery of the goods, an acknowledgment
that they have been received, if the
warehouseman requests it.
d) An undertaking to hold the warehouseman
harmless from claims of third parties.
2. A warehouseman is not justified in delivering the
goods to one of the following:
a) The person lawfully entitled to the possession
of the goods or his agent.
b)
c)
d)
Warehousemans Lien
A. Claims Included and Properties Covered
1. One of these statements is not correct:
a) A warehouseman has a lien on the goods
deposited or their proceeds in his hands for all
B.
III.
B.
IV.
c)
d)
Transfer of Rights
1. One of these statements is not correct:
a) A non-negotiable receipt may not be transferred
by delivery.
b) The negotiation of a non-negotiable receipt
does not give the transferee any additional right.
c) A person to whom a non-negotiable receipt was
transferred acquires as against the transferor
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.
2. One of these statements is not correct:
a)
b)
c)
d)
DEFINITION OF TERMS3
"action" includes counterclaim and set-off;
"fungible goods" means goods of which any unit is, from its
nature or by mercantile custom, treated as the equivalent of
any other unit;
"goods" includes all chattels personal other than things in
action and money;
"holder", as applied to a negotiable receipt, means a person
who has possession of the receipt and a right of property
therein, and, as applied to a non-negotiable receipt, means a
person named therein as the person to whom the goods are
to the delivered or his transferee;
"negotiable receipt" means a receipt in which it is stated
that the goods therein specified will be delivered to bearer or
to the order of a named person;
"non-negotiable receipt" means a receipt in which it is
stated that the goods therein specified will be delivered to
the holder thereof;
"purchase" includes to take as mortgagee or as pledgee;
"purchaser" includes mortgagee and pledgee;
"receipt" means a warehouse receipt;
"warehouse receipt" means an acknowledgment in writing
by a warehouseman of the receipt for a storage of goods not
his own;
"warehouseman" means a person who received goods for
storage for reward. R.S., c. 333, s. 1.
3.