14:06
hi everyone! I've been in DC for the past days. Anybody else get a WashU interview?
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Simple English definitions for legal terms
negotiable document of title
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A quick definition of negotiable document of title:
A negotiable document of title is a written description or declaration of goods that allows the holder to receive, hold, and dispose of both the document and the goods it covers. This type of document, such as a bill of lading or warehouse receipt, is governed by Article 7 of the UCC and stands for the goods it covers. This means that any transfer of the goods requires surrendering the document. In contrast, a non-negotiable document of title only serves as evidence of the goods it covers.
A more thorough explanation:
A negotiable document of title is a written description, identification, or declaration of goods that allows the holder (usually a bailee) to receive, hold, and dispose of the document and the goods it covers. This type of document, such as bills of lading, warehouse receipts, and delivery orders, actually stands for the goods it covers, so any transfer of the goods requires a surrender of the document.
For example, if a company ships a product to a customer and uses a bill of lading as a negotiable document of title, the customer cannot take possession of the product until they surrender the bill of lading to the carrier. This ensures that the carrier only releases the product to the rightful owner.
On the other hand, a non-negotiable document of title merely serves as evidence of the goods it covers. It does not stand for the goods themselves, and any transfer of the goods does not require surrender of the document. An example of a non-negotiable document of title is a receipt for goods stored in a warehouse.
Overall, negotiable documents of title are important in ensuring the proper transfer of goods and protecting the rights of both the seller and buyer.