(1) Subject to ss. 677.205 and 677.503, a holder to which a negotiable document of title has been duly negotiated acquires thereby:
(a) Title to the document;
(b) Title to the goods;
(c) All rights accruing under the law of agency or estoppel, including rights to goods delivered to the bailee after the document was issued; and
(d) The direct obligation of the issuer to hold or deliver the goods according to the terms of the document free of any defense or claim by the issuer except those arising under the terms of the document or under this chapter, but in the case of a delivery order, the bailee’s obligation accrues only upon the bailee’s acceptance of the delivery order and the obligation acquired by the holder is that the issuer and any indorser will procure the acceptance of the bailee.
(2) Subject to the following section, title and rights so acquired by due negotiation are not defeated by any stoppage of the goods represented by the document of title or by surrender of the goods by the bailee and are not impaired even if:
(a) The due negotiation or any prior due negotiation constituted a breach of duty;
(b) Any person has been deprived of possession of a negotiable tangible document or control of a negotiable electronic document by misrepresentation, fraud, accident, mistake, duress, loss, theft, or conversion; or
(c) A previous sale or other transfer of the goods or document has been made to a third person.
History.—s. 1, ch. 65-254; s. 639, ch. 97-102; s. 46, ch. 2010-131.
Note.—s. 7-502, U.C.C.; supersedes ss. 678.43, 678.49-678.51.
Structure Florida Statutes
Title XXXIX - Commercial Relations
Chapter 677 - Uniform Commercial Code: Documents of Title
Part V - Warehouse Receipts and Bills of Lading: Negotiation and Transfer (Ss. 677.501-677.509)
677.501 - Form of negotiation and requirements of due negotiation.
677.502 - Rights acquired by due negotiation.
677.503 - Document of title to goods defeated in certain cases.
677.505 - Indorser not guarantor for other parties.
677.506 - Delivery without indorsement; right to compel indorsement.
677.507 - Warranties on negotiation or delivery of document of title.
677.508 - Warranties of collecting bank as to documents of title.