Beruflich Dokumente
Kultur Dokumente
Art. 1505
General Rule:
No one can give what he does not have
Exceptions:
A. When the owner of the goods by his conduct precluded from denying the sellers authority.
Example: If A sells Bs property to C, and B consents, B is estopped from denying
As authority to sell. (Gutierrez Hermanos v. Orense, 28 Phil. 571).
Art. 1505
Nothing in this Title, however, shall affect:
Art. 1506
Where the seller of goods has a voidable title thereto, but his
title has not been avoided at the time of the sale, the buyer
acquires a good title to the goods, provided he buys them in
good faith, for value, and without notice of the sellers defect
of title.
Can a buyer acquire title from a thief (a person who stole and
then sold the goods to him)?
ANS.: No, because the owner has been unlawfully deprived of it. Hence,
the true owner can get it back without reimbursement.
Art. 1507
Art. 1508
How Negotiable Document of Title is Negotiated
There are two forms of negotiating a negotiable document of
title:
mere delivery;
indorsement PLUS delivery.
Art. 1509
Negotiation by Indorsement and Delivery
Example: The document says deliver to the order of Mr. X To
negotiate it, Mr. X must sign his name at the back and then deliver.
Mere delivery without signing is not suffi cient. When he signs he
may:
Art. 1510
Effect of Placing the Word Non-Negotiable
Example:
ANS.: Yes, insofar as the various holders of the note are concerned, the
note is still negotiable. Regarding the intent or liability of the maker,
this Article does not deal with the same.
Art. 1511
Effect of Delivery When Document Cannot Be Negotiated By
Mere Delivery
ANS.: Yes, but this does not have the effect of a negotiation. It is a
mere transfer or assignment. (See Nixson vs. Ward, 1929, 254 Ill.
App. 505).
A document of title contained the words deliver to Mr. X. This is therefore nonnegotiable.
Art. 1512
Who May Negotiate Negotiable Document of Title
Example: A document of title contained the following words:
Deliver to the order of X or to the order of the person to
whom this document has been entrusted by X. Later, X
entrusted the document to Y. May Y negotiate the same by
indorsement?