Virginia Code 8.7-503: Document to goods defeated in certain cases
(1) A document confers no right in goods against a person who before issuance of the document had a legal interest or a perfected security interest in them and who neither:
Terms Used In Virginia Code 8.7-503
- Carrier: means a person that issues a bill of lading. See Virginia Code 8.7-102
- Delivery order: means a record that contains an order to deliver goods directed to a warehouseman, carrier or other person who in the ordinary course of business issues warehouse receipts or bills of lading. See Virginia Code 8.7-102
- Document: means document of title as defined in the general definitions in Title 8. See Virginia Code 8.7-102
- Goods: means all things that are treated as movable for the purposes of a contract of storage or transportation. See Virginia Code 8.7-102
- Issuer: means a bailee who issues a document except that in relation to an unaccepted delivery order it means the person who orders the possessor of goods to deliver. See Virginia Code 8.7-102
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes any individual, corporation, partnership, association, cooperative, limited liability company, trust, joint venture, government, political subdivision, or any other legal or commercial entity and any successor, representative, agent, agency, or instrumentality thereof. See Virginia Code 1-230
- Statute: A law passed by a legislature.
(a) delivered or entrusted them or any document covering them to the bailor or his nominee with (i) actual or apparent authority to ship, store or sell, (ii) power to obtain delivery under § 8.7-403, or (iii) power of disposition under §§ 8.2-403, 8.2A-304(2), 8.2A-305(2), 8.9A-320, or § 8.9A-321(c) or other statute or rule of law; nor
(b) acquiesced in the procurement by the bailor or his nominee of any document.
(2) Title to goods based upon an unaccepted delivery order is subject to the rights of anyone to whom a negotiable warehouse receipt or bill of lading covering the goods has been duly negotiated. Such a title may be defeated under § 8.7-504 to the same extent as the rights of the issuer or a transferee from the issuer.
(3) Title to goods based upon a bill of lading issued to a freight forwarder is subject to the rights of anyone to whom a bill issued by the freight forwarder is duly negotiated. However, delivery by the carrier in accordance with Part 4 of this title pursuant to its own bill of lading discharges the carrier’s obligation to deliver.
Code 1950, § 61-44; 1964, c. 219; 2000, c. 1007; 2004, c. 200.