WAREHOUSE RECEIPT LAW

Warehouse Receipt Law

SCOPE

Covers all warehouse, whether public or private, bonded or not.

Applicable to warehousemen licensed under Act No. 3893 as amended by RA No.
247, General Bonded Warehouse Act, of special application to those engaged in
the business of receiving commodities for storage.

PURPOSES
1) To regulate status , rights, and liabilities of the parties in a warehousing contract;
2) To protect those who, in good faith and for value, acquire negotiable warehouse
receipts by negotiation;
3) To render the title to, and right of possession of, property stored in warehouses more
easily convertible;
4) To facilitate the use of warehouse receipts as documents of title; and
5) In order to accomplish these, to place a much greater responsibility on the
warehouseman.

Issue of Warehouse Receipt

Section 1. Person who may issue receipts.
Warehouseman is a person lawfully engaged in the business of storing goods for
profit.
Warehouse means the building or place where goods are deposited and stored
for profit.

Section 2. Form of receipts; Essential Terms.

Warehouse Receipt written acknowledgment by a warehouseman that he has
received and holds certain goods therein described in store for the person to whom
it is issued.
Warehouse Receipt is a bilateral contract.

ARRIANNE CABIAO

Page 1

WAREHOUSE RECEIPT LAW

Warehouse Receipt is not a negotiable instrument within the meaning of
Negotiable Instruments Law.

Essential Terms
1) Location of warehouse
2) Date of issue of receipt
3) Consecutive number of receipt
4) Person to whom the goods are deliverable
5) Rate of storage charges
6) Description of goods or packages
7) Signature of warehouseman
8) Warehousemans ownership of or interest in goods
9) Statement of advances made and liabilities incurred

Effect of Omission of Any Essential Terms:

1.

Validity of receipt is not affected.

2.

Warehouseman liable for damages.

3.

Negotiability of receipt not affected.

4.

Contract converted to ordinary deposit.

Section 3. What terms may be inserted?

Warehouseman may insert in a receipt, issued by him, any other terms and
conditions.

ARRIANNE CABIAO

Page 2

WAREHOUSE RECEIPT LAW

Terms and Condition shall not:
a. Contrary to the provisions of this Act.
b. In any wise impair his obligation to exercise that decree pf care in the safekeeping of the
goods entrusted to him which a reasonable careful man exercise in regard to similar
goods of his own.

Section 4. Non-Negotiable Receipt

Non-Negotiable Receipt a receipt in which it is stated that the goods received will be
delivered to the depositor or to any other specified person.

Section 5. Negotiable Receipt

Negotiable Receipt 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.

Section 6. Duplicate receipts must be so marked.

More than 1 receipt is issued for the same goods, word duplicate shall be
plainly placed upon the face of every receipt, except the first issued.

Section 7. Failure to mark not negotiable.

The holder of the receipt who purchased it for value, supposing it to be

negotiable, may, at his option, treat such receipt as negotiable one.

Application of Sections 6 and 7

Section 6 applies only to negotiable receipts.
Section 7 applies only to non-negotiable receipts.

ARRIANNE CABIAO

Page 3

WAREHOUSE RECEIPT LAW

Effect of Failure To Mark Negotiable or Non-Negotiable
1. Negotiable usually written or printed on the face of a negotiable warehouse receipt.
Failure to do so, does not render it non-negotiable if it contains words of negotiability.
2. Non-Negotiable receipts needs to be mark as non-negotiable or not negotiable
otherwise it is considered negotiable. Provided that the holder of such receipt purchased
it for value supposing it to be negotiable.

Construction of Warehouse Receipts

Liberal construction of the law in favour of the bona fide holder of such receipts.

Thank you and God Bless!

ARRIANNE CABIAO

Page 4