407.504 Rights acquired in absence of due negotiation; effect of diversion; stoppage of delivery.
161 words·~1 min read·
/wi/chapter-407/407-504A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
407.504 Rights acquired in absence of due negotiation; effect of diversion; stoppage of delivery.
(1)A transferee of a document of title, whether negotiable or nonnegotiable, to which the document has been delivered but not duly negotiated, acquires the title and rights that its transferor had or had actual authority to convey.
(2)In the case of a nonnegotiable document of title, until but not after the bailee receives notice of the transfer, the rights of the transferee may be defeated by any of the following:
(a)Those creditors of the transferor that could treat the transfer as void under s. 402.402 or 411.308 .
(b)A buyer from the transferor in ordinary course of business if the bailee has delivered the goods to the buyer or received notification of the buyer’s rights.
(c)A lessee from the transferor in ordinary course of business if the bailee has delivered the goods to the lessee or received notification of the lessee’s rights.