If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under Section 7-508, unless otherwise agreed, the transferor, in addition to any warranty made in selling or leasing the goods, warrants to its immediate purchaser only that:
(1) The document is genuine;
(2) The transferor does not have knowledge of any fact that would impair the document's validity or worth; and
(3) The negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents.
Structure Delaware Code
Part 5. Warehouse Receipts and Bills of Lading: Negotiation and Transfer
§ 7-501. Form of negotiation and requirements of due negotiation.
§ 7-502. Rights acquired by due negotiation.
§ 7-503. Document of title to goods defeated in certain cases.
§ 7-504. Rights acquired in absence of due negotiation; effect of diversion; stoppage of delivery.
§ 7-505. Indorser not guarantor for other parties.
§ 7-506. Delivery without indorsement: right to compel indorsement.
§ 7-507. Warranties on negotiation or delivery of document of title.
§ 7-508. Warranties of collecting bank as to documents of title.