Negotiable and Non-Negotiable Receipts

Definition of Negotiable Receipt (and Non-Negotiable Receipt):

a.    negotiable receipt  -  receipt in which it is stated that the goods received will be delivered to the bearer or to the order of any person named in such receipt

b.    non-negotiable receipt  -  receipt in which it is stated that the goods received will be delivered to the depositor or to any other specified person

NOTE:

1.  a provision in a negotiable receipt that it is non-negotiable is VOID

                   

        2.  a negotiable warehouse receipt is not a negotiable instrument in the same sense as in the NIL.

Duplicate receipts (applies ONLY) to negotiable warehouse receipts.

-       Whenever more than one negotiable receipt is issued for the same goods, the word ‘DUPLICATE” shall be placed on the face of the receipt except the one 1^st issued.

-       Effect:   the warehouseman shall be liable for damages  for failing to do this to any one who purchased the subsequent receipt (1) for value, and (2) supposing it to be an original;  even though the purchase be after delivery of the goods by the warehouseman to the holder of the original receipt.

Failure to make “non-negotiable” (applies only to non-negotiable warehouse receipts)

a.    A non-negotiable receipt must contain the word:  non-negotiable

b.    Effect: Failure to do so will make a holder who (1) purchased for value AND (2) supposing it to be negotiable, may at his option treat it as negotiable

How must warehouse receipts be construed? 

Liberal construction of the law in favor of bona fide holders.  BUT this has no application to actions against any party other than a warehouseman.