South Carolina Code 36-7-502. Rights acquired by due negotiation
(1) title to the document;
Terms Used In South Carolina Code 36-7-502
- Bailee: means the person who by a warehouse receipt, bill of lading or other document of title acknowledges possession of goods and contracts to deliver them. See South Carolina Code 36-7-102
- Delivery order: means a record that contains an order to deliver goods directed to a warehouse, carrier or other person that in the ordinary course of business issues warehouse receipts or bills of lading. See South Carolina Code 36-7-102
- Document: means document of title as defined in the general definitions in Chapter 1 of this title. See South Carolina Code 36-7-102
- Fraud: Intentional deception resulting in injury to another.
- Goods: means all things that are treated as movable for the purposes of a contract for storage or transportation. See South Carolina Code 36-7-102
- Issuer: means a bailee who issues a document of title or, in the case of an unaccepted delivery order, the person who orders the possessor of goods to deliver. See South Carolina Code 36-7-102
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(2) title to the goods;
(3) all rights accruing under the law of agency or estoppel, including rights to goods delivered to the bailee after the document was issued; and
(4) 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 chapter, 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 indorser will procure the acceptance of the bailee.
(b) Subject to § 36-7-503, 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:
(1) the due negotiation or any prior due negotiation constituted a breach of duty;
(2) 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
(3) a previous sale or other transfer of the goods or document has been made to a third person.