Alabama § 7-7-503 Document of Title to Goods Defeated in Certain Cases

Alabama Statutes

§ 7-7-503 — Document of Title to Goods Defeated in Certain Cases

Alabama § 7-7-503

Title 7Commercial Code

Art. 7Warehouse Receipts, Bills of Lading and Other Documents of Title

Part 5Warehouse Receipts and Bills of Lading: Negotiation and Transfer

This text of Alabama § 7-7-503 (Document of Title to Goods Defeated in Certain Cases) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 7-7-503 (2026).

Text

(a)A document of title confers no right in goods against a person that before issuance of the document had a legal interest or a perfected security interest in the goods and that did not:

(1)Deliver or entrust the goods or any document of title covering the goods to the bailor or the bailor’s nominee with:

(A)Actual or apparent authority to ship, store, or sell;

(B)Power to obtain delivery under Section 7-7-403; or

(C)Power of disposition under Section 7-2-403, 7-2A-304(2), 7-2A-305(2), 7-9A-320, or 7-9A-321(c) or other statute or rule of law; or

(2)Acquiesce in the procurement by the bailor or its nominee of any document.

(b)Title to goods based upon an unaccepted delivery order is subject to the rights of any person to which a negotiable warehouse receipt or bill of lading coverin

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(a) A document of title confers no right in goods against a person that before issuance of the document had a legal interest or a perfected security interest in the goods and that did not:
(1) Deliver or entrust the goods or any document of title covering the goods to the bailor or the bailor’s nominee with:
(A) Actual or apparent authority to ship, store, or sell;
(B) Power to obtain delivery under Section 7-7-403; or
(C) Power of disposition under Section 7-2-403, 7-2A-304(2), 7-2A-305(2), 7-9A-320, or 7-9A-321(c) or other statute or rule of law; or
(2) Acquiesce in the procurement by the bailor or its nominee of any document.
(b) Title to goods based upon an unaccepted delivery order is subject to the rights of any person to which a negotiable warehouse receipt or bill of lading covering the goods has been duly negotiated. That title may be defeated under Section 7-7-504 to the same extent as the rights of the issuer or a transferee from the issuer.
(c) Title to goods based upon a bill of lading issued to a freight forwarder is subject to the rights of any person to which a bill issued by the freight forwarder is duly negotiated. However, delivery by the carrier in accordance with Part 4 pursuant to its own bill of lading discharges the carrier’s obligation to deliver.

Legislative History

(Prior version of this section added by Acts 1965, No. 549, p. 811; amended by Act 2001-481, p. 647, §2; repealed by Act 2004-315, p. 464, §1; current section added by Act 2004-315, p. 464, §1.)