- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 7. Warehouse Receipts, Bills of Lading, and Other Documents of Title
- Section 502. Rights Acquired By Due Negotiation.
previous: Section 501
. Form of Negotiation and Requirements of "Due Negotiation.".
next: Section 503
. Document of Title to Goods Defeated in Certain Cases.
AS 45.07.502. Rights Acquired By Due Negotiation.
- (a) Subject to AS 45.07.503
and to the provisions of AS 45.07.205
on fungible goods, a holder to whom a negotiable document of title has been duly negotiated acquires
- (1) title to the document;
- (2) title to the goods;
- (3) all rights accruing under the law of agency or estoppel, including rights to goods delivered to the bailee after the
document was issued; and
- (4) the direct obligation of the issuer to hold or deliver the goods according to the terms of the document free of a
defense or claim by the issuer except one arising under the terms of the document or under this chapter; in the case of
a delivery order the bailee's obligation accrues only upon acceptance, and the obligation acquired by the holder is
that the issuer and an endorser will procure the acceptance of the bailee.
- (b) Subject to AS 45.07.503
, title and rights so acquired are not defeated by a stoppage of the goods represented by the document or by surrender
of the goods by the bailee, and are not impaired even though the negotiation or a prior negotiation constituted a
breach of duty or even though a person has been deprived of possession of the document by misrepresentation, fraud,
accident, mistake, duress, loss, theft, or conversion, or even though a previous sale or other transfer of the goods or
document has been made to a third person.
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