Warehouse Receipts

What is a Warehouse Receipt (WR)? It is a written acknowledgment by a Warehouseman (WM) that he has received and holds certain goods in his warehouse for the person to whom the document is issued. (Miravite, 2009) Deliver to Mr. D or bearer 1,000 piculs of first grade sugar. (sgd.) P Functions of WR-{1} proof of possession or control of the gods described therein; {2} authorizing or purporting to authorize the possession of the WR to transfer or receive, either by endorsement or by delivery of the goods represented by such receipt. Who may issue WR? A WR may be issued by a WM whether private or public, bonded or not, or a person authorized by a WM may issue WR. Who is deemed a WM? A person lawfully engaged in the business of storing goods for profit or one who receives the goods and store the goods of another for compensation. Contents of the Receipts: {1} location of the warehouse {2} date of the issuance of the receipt {3} number of the receipt {4} statement whether the good are deliverable to bearer, to a specified person or his order {5} storage charges {6} description of the stored goods {7} signature of the WM or his agent {8} statement of the advances made {9} liabilities incurred by the depositor for which the lien was constituted. Terms which cannot be included: {1} terms contrary to WRL {2} terms reducing the degree of diligence by the law on WM. KINDS 1. Non-negotiable Warehouse Receipt Deliver to Mr. L or order 1,000 piculs of first grade sugar. (sgd.) S

Assignment and Negotiation of WR: {A} Nonnegotiable WR: a receipt which states that the goods received will be delivered to the depositor or to any specified person/s. {B} Negotiable: a receipt which states that the goods are deliverable to order/bearer [NOTE: Case: 111 Phil 483, 1961Despite endorsement and delivery of a negotiable WR, if the only purpose thereof is to make the WR a security of loan and there was no intent to transfer ownership; the debtor has still to bear the risk of loss Equitable Mortgage] Obligations, Duties, and Rights of WM: {a} to issue receipts for the goods that he receives for storage {b} to take care of the goods {c} in absence of any legal excuse, to deliver the goods to i)holder of the receipt of the goods ii)to the depositor if accompanied by the requirements specified. ::WM may legally refuse to deliver the goods:: {1} if the WM has been requested by a person entitled to a right of property or possession in the good not to make delivery {2} if the WM had information that the delivery to be made was one not lawfully entitled to the possession of the goods {3} if several claim the goods {4 } PNB v SE Jr. 256 SCRA 380, 1996, non-payment of the storage fees Misdelivery: {1} delivery is made to one not lawfully entitled to it {2} if delivery is made to a person holding a receipt, if prior deliver he had been requested not to make delivery Alteration to WRs: a] Material b] Immaterial c] Authorized d] Unauthorized Effects: 1) ImmaterialWM is liable according to the terms of the receipt as originally issued 2) Material and Authorized- WM is liable to the terms of the receipts as altered. 3) Material and Unauthorized without fraudulent intern, the WM is liable according to the terms of the receipts as they were before altered 4) Material, Unauthorized, Fraudulent- WM is liable according to the terms as originally issued

Deliver to Mr. K 1,000 piculs of first grade sugar. G (sgd.)

2. Negotiable Warehouse Receipt

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Diligence required: the WM is liable for any loss o injury to the goods caused by his failure to exercise such care in regard to them as a reasonably careful owner of similar goods would exercise. WM Lien: General Rule: WM by issuing the receipt is stopped from setting up any title or right to the possession of the goods, EXCEPT when it pertains to the enforcement of his liens. HOWEVER, WM has a lien on the goods deposited or on the proceeds thereof in his hands for all lawful charges and fees.

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