400.7-502. Rights acquired by due negotiation. — (1) Subject to the following section and to the provisions of section 400.7-205 on fungible goods, a holder to whom a negotiable document of title has been duly negotiated acquires thereby:
(a) title to the document;
(b) title to the goods;
(c) all rights accruing under the law of agency or estoppel, including rights to goods delivered to the bailee after the document was issued; and
(d) 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 him except those arising under the terms of the document or under this article. In the case of a delivery order the bailee's obligation accrues only upon acceptance and the obligation acquired by the holder is that the issuer and any endorser will procure the acceptance of the bailee.
(2) Subject to the following section, title and rights so acquired are not defeated by any stoppage of the goods represented by the document or by surrender of such goods by the bailee, and are not impaired even though the negotiation or any prior negotiation constituted a breach of duty or even though any person has been deprived of possession of the document by misrepresentation, fraud, accident, mistake, duress, loss, theft or conversion, or even though a previous sale or other transfer of the goods or document has been made to a third person.
--------
(L. 1963 p. 503 § 7-502)
---- end of effective 28 Aug 1963 ----
- All versions | ||||
---|---|---|---|---|
Effective | End | |||
400.7-502 | 8/28/2017 | |||
400.7-502 | 8/28/1963 | 8/28/2017 |
|
|||
Click here for the Reorganization Act of 1974 - or - Concurrent Resolutions Having Force & Effect of Law | |||
In accordance with Section 3.090, the language of statutory sections enacted during a legislative session are updated and available on this website on the effective date of such enacted statutory section. | |||
|
Recent Sections | Editorials | May Be Cited As | Tables & Forms | Multiple Enact |
Repeal & Transfer | Definitions | End Report | ||
|
||||
Site changes | Pictures | Contact |
Legislative Research | Oversight | MOLIS | |||
Library | MO WebMasters |