Rights acquired in the absence of due negotiation
- • effect of diversion
- • stoppage of delivery
(1) A transferee of a document of title, whether negotiable or nonnegotiable, to which the document has been delivered but not duly negotiated, acquires the title and rights that the documents transferor had or had actual authority to convey.
(2) In the case of a transfer of a nonnegotiable document of title, until but not after the bailee receives notice of the transfer, the rights of the transferee may be defeated:
(a) By those creditors of the transferor which could treat the transfer as void under ORS 72.4020 (Rights of sellers creditors against sold goods) or 72A.3080 (Special rights of creditors);
(b) By a buyer from the transferor in ordinary course of business if the bailee has delivered the goods to the buyer or received notification of the buyers rights;
(c) By a lessee from the transferor in ordinary course of business if the bailee has delivered the goods to the lessee or received notification of the lessees rights; or
(d) As against the bailee by good faith dealings of the bailee with the transferor.
(3) A diversion or other change of shipping instructions by the consignor in a nonnegotiable bill of lading which causes the bailee not to deliver the goods to the consignee defeats the consignees title to the goods if the goods have been delivered to a buyer in ordinary course of business or lessee in ordinary course of business and, in any event, defeats the consignees rights against the bailee.
(4) Delivery of the goods pursuant to a nonnegotiable document of title may be stopped by a seller under ORS 72.7050 (Sellers stoppage of delivery in transit or otherwise) or a lessor under ORS 72A.5260 (Lessors stoppage of delivery in transit or otherwise) subject to the requirements of due notification in those sections. A bailee that honors the sellers or lessors instructions is entitled to be indemnified by the seller or lessor against any resulting loss or expense. [1961 c.726 §77.5040 (Rights acquired in the absence of due negotiation); 2009 c.181 §80]
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information