(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:

lawyer at desk

Ask a business law question, get an answer ASAP!
Thousands of highly rated, verified business lawyers.
Click here to chat with a lawyer about your rights.

Terms Used In South Carolina Code 36-7-503

  • Carrier: means a person who issues a bill of lading. 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
  • 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.
  • Statute: A law passed by a legislature.
  • Warehouse: means a person engaged in the business of storing goods for hire. See South Carolina Code 36-7-102

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

(B) power to obtain delivery under § 36-7-403; or

(C) power of disposition under § 36-2-403, 36-2A-304(2), 36-2A-305(2), 36-9-320, or 36-9-321(c), or other statute or rule of law; or

(2) acquiesce in the procurement by the bailor or the bailor’s 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 § 36-7-504 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 of this chapter pursuant to its own bill of lading discharges the carrier’s obligation to deliver.

  Previous section
Next section  
 Chapter 7 Contents