Alabama § 7-7-507 Warranties on Negotiation or Delivery of Document of Title

Alabama Statutes

§ 7-7-507 — Warranties on Negotiation or Delivery of Document of Title

Alabama § 7-7-507

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 § 7-7-507 (Warranties on Negotiation or Delivery of Document of Title) 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 § 7-7-507 (2026).

Text

If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under Section 7-7-508, unless otherwise agreed, the transferor, in addition to any warranty made in selling or leasing the goods, warrants to its immediate purchaser only that:

(1)The document is genuine;

(2)The transferor does not have knowledge of any fact that would impair the document’s validity or worth; and

(3)The negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents.

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If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under Section 7-7-508, unless otherwise agreed, the transferor, in addition to any warranty made in selling or leasing the goods, warrants to its immediate purchaser only that:
(1) The document is genuine;
(2) The transferor does not have knowledge of any fact that would impair the document’s validity or worth; and
(3) The negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents.

Legislative History

(Prior version of this section added by Acts 1965, No. 549, p. 811; repealed by Act 2004-315, p. 464, §1; current section added by Act 2004-315, p. 464, §1.)