document of title

Document of Title

Any written instrument, such as a bill of lading, a warehouse receipt, or an order for the delivery of goods, that in the usual course of business or financing is considered sufficient proof that the person who possesses it is entitled to receive, hold, and dispose of the instrument and the goods that it covers.

A document of title is usually either issued or addressed by a bailee—an individual who has custody of the goods of another—to a bailor—the person who has entrusted the goods to him or her. Its terms must describe the goods covered by it so that they are identifiable as well as set forth the conditions of the contractual agreement. Possession of a document of title is symbolic of ownership of the goods that are described within it.

Documents of title are an integral part of the business world since they facilitate commercial transactions by serving as security for loans sought by their possessors and by promoting the free flow of goods without unduly burdening the channels of commerce.

A person who possesses a document of title can legally transfer ownership of the goods covered by it by delivering or endorsing it over to another without physically moving the goods. In such a situation, a document of title is a negotiable instrument because it transfers legal rights of ownership from one person to another merely by its delivery or endorsement. It is negotiable only if its terms state that the goods are to be delivered to the bearer, the holder of the document, to the order of the named party, or, where recognized in overseas trade, to a named person or his or her assigns. The Uniform Commercial Code and various federal and state regulatory laws define the legal rights and obligations of the parties to a document of title.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

document of title

any bill of lading, dock warrant, warehouse keeper's certificate, warrant or order for the delivery of goods, or any other document used in the ordinary course of business as proof of the possession or control of goods or authorizing or purporting to authorize either by endorsement or delivery the possession of the document to transfer or receive goods thereby represented.
Collins Dictionary of Law © W.J. Stewart, 2006
References in periodicals archive ?
'From what is written in the offending article, it appears that SR was referring to the land known as Lot 63 Sawai land District, the document of title of which was issued to Tanjung Tiara Sdn Bhd on March 28, 1994 after its chairman, a West Malaysian Member of Parliament, applied for it.
The IO also admitted that no document of title had been collected by the investigators that showed that Mr Sharif was owner of any of the London flats.
In addition, the bill of lading is a document of title giving the consignee or the endorsee of the bill the right to sell the goods while they are in transit.
The company should check the validity of the document of title of property.
In this case of title transfer at physical delivery, the time and place of the transfer of an actual document of title is preempted by physical delivery of the identified goods.
- remember that the person recorded on the registration document or certificate may not be the legal owner; it is not a document of title
A seller loses its right to stop delivery of goods in transit where the buyer received the goods; the bailee, other than a carrier, acknowledges to the buyer that it is holding the goods for the buyer; the carrier transporting the goods acknowledges to the buyer that the carrier is holding the goods for the buyer by either reshipping them according to the buyer's instructions or holding them at the buyer's warehouse; or a negotiable document of title for the goods has been issued or negotiated to the buyer, or a non-negotiable document has been issued to someone other than the seller.
Coming to be called "the Hague Rules," they applied only to contracts of carriage "covered by a bill of lading or any similar document of title." Almost 80 years later, the import of that phrase remains surprisingly controversial.
A Norwich, Connecticut, couple sought $21 million in damages from Publisher's Clearing House, the magazine sweepstakes company, saying that its repeated notices marked "Document of Title" and "official correspondence from the Publisher's Clearing House board of judges" with messages such as "Congratulations!
The federal statute mentions only electronic records that relate to a loan secured by real property, but the state statute is broader and also extends to all documents that would be, if on paper, either a promissory note under UCC Article 3 or a document of title under UCC Article 7.
'Document of title will be issued to the community concerned to protect their territorial domain,' he said, adding that this nullifies the views expressed by some so-called champions of native rights, keyboard and armchair critics and state Pakatan Harapan.

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