This document discusses the assignment of non-negotiable documents of title. It states that the assignment of a non-negotiable document of title is perfected by consent, but to be valid against third parties it must be in a public instrument. The assignee acquires rights against the transferor upon a valid assignment. The assignee does not have a legal relationship with the bailee until the bailee is notified of the assignment. A person who transfers a document of title warrants that the document is genuine and valid, and that they have the legal right to transfer it.
This document discusses the assignment of non-negotiable documents of title. It states that the assignment of a non-negotiable document of title is perfected by consent, but to be valid against third parties it must be in a public instrument. The assignee acquires rights against the transferor upon a valid assignment. The assignee does not have a legal relationship with the bailee until the bailee is notified of the assignment. A person who transfers a document of title warrants that the document is genuine and valid, and that they have the legal right to transfer it.
This document discusses the assignment of non-negotiable documents of title. It states that the assignment of a non-negotiable document of title is perfected by consent, but to be valid against third parties it must be in a public instrument. The assignee acquires rights against the transferor upon a valid assignment. The assignee does not have a legal relationship with the bailee until the bailee is notified of the assignment. A person who transfers a document of title warrants that the document is genuine and valid, and that they have the legal right to transfer it.
constitutes an incorporeal right, its sale constitutes actually an assignment which under Article 1624 is perfected by mere consent , but which under Article 1625 would require its appearance in a public instrument otherwise it shall produce no effect as against third persons. Effects of transfer by assignment
A person to whom a non- negotiable document
of title has been duly assigned acquires thereby, as against the transferor. In the assignment of a non-negotiable document of title, there is no legal relationship between the assignee and the bailee until the latter is informed by the former of the assignment of the covering document of title. Warranties on negotiation and assignment of document of title
A person who for value negotiates or
transfers a document of title by endorsement or delivery, including one who assigns for value a claim secured by a document of title, unless a contrary intention appears, warrants that: a. The document is genuine; b. He has a legal right to negotiate or transfer it; c. He has no knowledge of any fact which would impair the validity of worth of the document d. He has a right to transfer the title to the goods; e. The goods are merchantable or fit for a particular purpose, whenever such warranties would have been implied if the contract of the parties had been to transfer without a document of title the goods represented thereby Effects when owner of the document of title has no legal title to the goods 1. When goods covered by a non- negotiable document Where the goods are covered by a non- negotiable document of title, and under the premise that the assignee- buyer had obtained possession of the goods by the proper notification to the bailee of such purchase, the situation would have to be governed by the formula provided under Article 559 of the civil code. When goods covered by negotiable document In a situation where the goods are covered by a negotiable document of title properly negotiated to the holder-buyer, the premise would have to be that by issuing such negotiable document the bailee has constituted himself as an agent to possess the goods for the benefit of the holder of the document as his principal, then it becomes apparent that the same principles under Article 559 of the civil code would have to apply. Rules on levy/ Garnishment of goods covered by document of title Under Article 1514 , a person to whom a non- negotiable document of title has been transferred, must notify the bailee who issued the document of the transfer thereof, and only then does the transferee acquire the direct obligation of such bailee to hold possession of the goods for him according to the terms of the document. Prior to the notification to such bailee by the transferor or transferee of a non- negotiable document of title