A party to or purchaser for value in good faith of a document of title, other than a bill of lading, that relies upon the description of the goods in the document may recover from the issuer damages caused by the nonreceipt or misdescription of the goods, except to the extent that:
Source: L. 2006: Entire article R&RE, p. 474, § 2, effective September 1.
Editor's note: This section is similar to former § 4-7-203 as it existed prior to 2006.
Prior Uniform Statutory Provision: Former Section 7-203.
Changes: Changes to this section are for style only.
Purpose:
This section is a simplified restatement of existing law as to the method by which a bailee may avoid responsibility for the accuracy of descriptions which are made by or in reliance upon information furnished by the depositor. The issuer is liable on documents issued by an agent, contrary to instructions of its principal, without receiving goods. No disclaimer of the latter liability is permitted.
Cross Reference: Section 7-301.
Definitional Cross References:
"Conspicuous". Section 1-201.
"Document of title". Section 1-201.
"Goods". Section 7-102.
"Good Faith". Section 1-201. [7-102]
"Issuer". Section 7-102.
"Notice". Section 1-201.
"Party". Section 1-201.
"Purchaser". Section 1-201.
"Receipt of goods". Section 2-103.
"Value". Section 1-201.
Structure Colorado Code
Title 4 - Uniform Commercial Code
Article 7 - Documents of Title
Part 2 - Warehouse Receipts - Special Provisions
§ 4-7-201. Person That May Issue a Warehouse Receipt - Storage Under Bond
§ 4-7-202. Form of Warehouse Receipt - Effect of Omission
§ 4-7-203. Liability for Nonreceipt or Misdescription
§ 4-7-204. Duty of Care - Contractual Limitation of Warehouse's Liability
§ 4-7-205. Title Under Warehouse Receipt Defeated in Certain Cases
§ 4-7-206. Termination of Storage at Warehouse's Option
§ 4-7-207. Goods Must Be Kept Separate - Fungible Goods