§ 34.1-7-502 — Rights acquired by due negotiation

Wyoming § 34.1-7-502

• Jurisdiction: Wyoming
• Title 34.1: Uniform Commercial Code
• Art. 6: BULK TRANSFERS

Text

(a) Subject to W.S. 34.1-7-205 and 34.1-7-503, a holder to
which a negotiable document of title has been duly negotiated
acquires thereby:
(i) Title to the document;
(ii) Title to the goods;
(iii) All rights accruing under the law of agency or
estoppel, including rights to goods delivered to the bailee
after the document was issued; and
(iv) The direct obligation of the issuer to hold or
deliver the goods according to the terms of the document free of
any defense or claim by the issuer except those arising under
the terms of the document or under this article, but in the case
of a delivery order, the bailee's obligation accrues only upon
the bailee's acceptance of the delivery order and the obligation
acquired by the holder is that the issuer and any endorser will
procure the acceptance of the bailee.
(b) Subject to W.S. 34.1-7-503, title and rights acquired
by due negotiation are not defeated by any stoppage of the goods
represented by the document of title or by surrender of the
goods by the bailee and are not impaired even if:
(i) The due negotiation or any prior due negotiation
constituted a breach of duty;
(ii) Any person has been deprived of possession of a
negotiable tangible document or control of a negotiable
electronic document by misrepresentation, fraud, accident,
mistake, duress, loss, theft, or conversion; or
(iii) A previous sale or other transfer of the goods
or document has been made to a third person.