A bailee that in good faith has received goods and delivered or otherwise disposed of the goods according to the terms of a document of title or pursuant to this article is not liable for the goods even if:

(1) The person from which the bailee received the goods did not have authority to procure the document or to dispose of the goods; or

Terms Used In Alabama Code 7-7-404

  • Bailee: means a person that by a warehouse receipt, bill of lading, or other document of title acknowledges possession of goods and contracts to deliver them. See Alabama Code 7-7-102
  • Good faith: means honesty in fact in the conduct or transaction concerned. See Alabama Code 7-7-102
  • Goods: means all things that are treated as movable for the purposes of a contract for storage or transportation. See Alabama Code 7-7-102
  • person: includes a corporation as well as a natural person. See Alabama Code 1-1-1
(2) The person to which the bailee delivered the goods did not have authority to receive the goods.
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