(a) A bailee shall deliver the goods to a person entitled under a document of title if the person complies with Subsections (b) and (c), unless and to the extent that the bailee establishes any of the following:
(1) delivery of the goods to a person whose receipt was rightful as against the claimant;
(2) damage to or delay, loss, or destruction of the goods for which the bailee is not liable;
(3) previous sale or other disposition of the goods in lawful enforcement of a lien or on a warehouse‘s lawful termination of storage;
(4) the exercise by a seller of its right to stop delivery pursuant to Section 2.705 or by a lessor of its right to stop delivery pursuant to Section 2A.526;
(5) a diversion, reconsignment, or other disposition pursuant to Section 7.303;
(6) release, satisfaction, or any other fact affording a personal defense against the claimant; or
(7) any other lawful excuse.
(b) A person claiming goods covered by a document of title shall satisfy the bailee’s lien if the bailee so requests or the bailee is prohibited by law from delivering the goods until the charges are paid.

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Terms Used In Texas Business and Commerce Code 7.403

  • Bailee: means a person that by a warehouse receipt, bill of lading, or other document of title acknowledges possession of goods and contracts to deliver them. See Texas Business and Commerce Code 7.102
  • Goods: means all things that are treated as movable for the purposes of a contract for storage or transportation. See Texas Business and Commerce Code 7.102
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
  • Warehouse: means a person engaged in the business of storing goods for hire. See Texas Business and Commerce Code 7.102

(c) Unless a person claiming the goods is one against which the document of title does not confer a right under Section 7.503(a):
(1) the person claiming under a document shall surrender possession or control of any outstanding negotiable document covering the goods for cancellation or indication of partial deliveries; and
(2) the bailee shall cancel the document or conspicuously indicate in the document the partial delivery or be liable to any person to which the document is duly negotiated.