Page:United States Statutes at Large Volume 76A.djvu/232

–136– -136document the bailee issuing the document undertakes to deliver the goods to the order of the person to whom the possession or custody of the document has been entrusted, or if at the time of such entrusting the document is in such form that it may be negotiated by delivery. § 1457. Rights of person to whom document has been negotiated A person to whom a negotiable document of title has been duly negotiated acquires thereby: (1) such title to the goods as the person negotiating the document to him had or had ability to convey to a purchaser in good faith for value and also such title to the goods as the person to whose order the goods were to be delivered by the terms of the document had or had ability to convey to a purchaser in good faith for value; and (2) the direct obligations of the bailee issuing the document to hold possession of the goods for him according to the terms of the document as fully as if such bailee had contracted directly with him. § 1458. Rights of person to whom document has been transferred A person to whom a document of title has been transferred, but not negotiated, acquires thereby, as against the transferor, the title to the goods, subject to the terms of any agreement with the transferor. If the document is nonnegotiable, such person also acquires the right to notify the bailee who issued the document of the transfer thereof, and thereby to acquire the direct obligation of such bailee to hold possession of the goods for him according to the terms of the document. Prior to the notification of such bailee by the transferor or transferee of a nonnegotiable document of title, the title of the transferee to the goods and the right to acquire the obligation of such bailee may be defeated by the levy of an attachment or execution upon the goods by a creditor of the transferor, or 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. § 1459. Transfer of negotiable document without indorsement Where a negotiable document of title is transferred for value by delivery, and the indorsement of the transferor is essential for negotiation, the transferee acquires a right against the transferor to compel him to indorse the document unless a contrary intention appears. The negotiation shall take effect as of the time when the indorsement is actually made. § 1460. Warranties on sale of document A person who for value negotiates or transfers a document of title by indorsement or delivery, mcluding one who assigns for value a claim secured by a document of title unless a contrary intention appears, warrants: (1) that the document is genuine; (2) that he has a legal right to negotiate or transfer it; (3) that he has knowledge of no fact which would impair the validity or worth of the document; and (4) that he has a right to transfer the title to the goods and that the goods are mercliantable or fit for a particular purpose, whenever such warranties would have been implied if the contract of the parties had been to transfer without a document of title the goods represented thereby.

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