If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under Section 36-7-508, then 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.
HISTORY: 1962 Code Section 10.7-507; 1966 (54) 2716; 2014 Act No. 213 (S.343), Section 2, eff October 1, 2014.
OFFICIAL COMMENT
Prior Uniform Statutory Provision: Former Section 7-507.
Changes: Substitution of the word "delivery" for the word "transfer," reference leasing transactions and style.
Purposes:
1. Delivery of goods by use of a document of title does not limit or displace the ordinary obligations of a seller or lessor as to any warranties regarding the goods that arises under other law. If the transfer of documents attends or follows the making of a contract for the sale or lease of goods, the general obligations on warranties as to the goods (Sections 2-312 through 2-318 and Sections 2A-210 through 2A-316) are brought to bear as well as the special warranties under this section.
2. The limited warranties of a delivering or collecting intermediary, including a collecting bank, are stated in Section 7-508.
Cross References:
Point 1: Sections 2-312 through 2-318 and 2A-310-through 2A-316.
Point 2: Section 7-508.
Definitional Cross References:
"Delivery". Section 1-201.
"Document of title". Section 1-201.
"Genuine". Section 1-201.
"Goods". Section 7-102.
"Person". Section 1-201.
"Purchaser". Section 1-201.
"Value". Section 1-204.
Editor's Note
2014 Act No. 213, Section 51, provides as follows:
"SECTION 51. This act becomes effective on October 1, 2014. It applies to transactions entered into and events occurring after that date."
Structure South Carolina Code of Laws
Chapter 7 - Commercial Code - Warehouse Receipts, Bills Of Lading And Other Documents Of Title
Section 36-7-101. Short title.
Section 36-7-102. Definitions and index of definitions.
Section 36-7-103. Relation of chapter to treaty, statute, tariff, classification or regulation.
Section 36-7-105. Reissuance in alternative medium.
Section 36-7-106. Control of electronic document of title.
Section 36-7-201. Who may issue a warehouse receipt; storage under government bond.
Section 36-7-202. Form of warehouse receipt; essential terms; optional terms.
Section 36-7-203. Liability for nonreceipt or misdescription.
Section 36-7-204. Duty of care; contractual limitation of warehouse's liability.
Section 36-7-205. Title under warehouse receipt defeated in certain cases.
Section 36-7-206. Termination of storage at warehouse's option.
Section 36-7-207. Goods must be kept separate; fungible goods.
Section 36-7-208. Altered warehouse receipts.
Section 36-7-209. Lien of warehouse.
Section 36-7-210. Enforcement of warehouse's Lien.
Section 36-7-302. Through bills of lading and similar documents.
Section 36-7-303. Diversion; reconsignment; change of instructions.
Section 36-7-304. Tangible bills of lading in a set.
Section 36-7-305. Destination bills.
Section 36-7-306. Altered bills of lading.
Section 36-7-307. Lien of carrier.
Section 36-7-308. Enforcement of carrier's lien.
Section 36-7-309. Duty of care; contractual limitation of carrier's liability.
Section 36-7-401. Irregularities in issue of receipt or bill or conduct of issuer.
Section 36-7-402. Duplicate document of title; overissue.
Section 36-7-403. Obligation of bailee to deliver; excuse.
Section 36-7-404. No liability for good-faith delivery pursuant to document of title.
Section 36-7-501. Form of negotiation and requirements of "due negotiation".
Section 36-7-502. Rights acquired by due negotiation.
Section 36-7-503. Document of title to goods defeated in certain cases.
Section 36-7-505. Indorser not a guarantor for other parties.
Section 36-7-506. Delivery without indorsement; right to compel indorsement.
Section 36-7-507. Warranties on negotiation or delivery of document of title.
Section 36-7-508. Warranties of collecting bank as to documents of title.
Section 36-7-509. Adequate compliance with commercial contract.
Section 36-7-601. Lost, stolen, or destroyed documents of title.
Section 36-7-602. Judicial process against goods covered by negotiable document of title.