1.

Warehouse Receipts Law

A. Nature and functions of a warehouse receipt

Definition and nature of Warehouse Receipts
Purpose of the Law
Who may issue Warehouse Receipts
Form and content of Warehouse Receipts
Effect of omission of any of the essential terms
Terms that cannot be included

1. To whom delivered

2. Kinds

3. Distinctions between a negotiable instrument and a negotiable warehouse receipt

4. Rights of a holder of a negotiable warehouse receipt as against a transferee of a
nonnegotiable warehouse receipt

B. Duties of a warehouseman

Who is a warehouseman
Principal obligations of a warehouseman
Lawful excuses to deliver goods
In case of misdelivery
Altered receipts
Liability of warehouseman

C. Warehousemans lien

Extent
Loss and waiver of lien
Enforcement

Other topics:

D. Negotiation and transfer of receipts

E. Criminal offenses

2. Trust Receipts Law
Purpose of the Law
Trust Receipts, Definition
Trust Receipt Transaction, Definition
Parties to a Trust Receipt
Importance of Trust Receipts
Difference of Trust Receipts and Letters Of Credit

A. Definition/concept of a trust receipt transaction
1. Loan/security feature
2. Ownership of the goods, documents and instruments under a trust receipt

B. Rights of the entruster

1. Validity of the security interest as against the creditors of the entrustee/innocent
purchasers for value

C. Obligations and liability of the entrustee

1. Payment/delivery of proceeds of sale or disposition of goods, documents or
instruments
2. Return of goods, documents or instruments in case of sale
3. Liability for loss of goods, documents or instruments
4. Penal sanction if offender is a corporation

D. Remedies available

Cases:

1. Development Bank of the Philippines v. Prudential Bank, G.R. No. 143772, Nov.
22, 2005
2. Landl & Company (Phil.) Inc., et al v. Metropolitan Bank, G.R. No. 159622, July
30, 2004
3. Anthony L. Ng v. People of the Philippines, G.R. NO. 173905, April 23, 2010

3. Letters of Credits
A. Definition/concept

B. Governing laws

C. Nature of letter of credit

D. Parties to a letter of credit

1. Rights and obligations of parties

E. Basic principles of letter of credit

1. Doctrine of independence
2. Fraud exception principle
3. Doctrine of strict compliance

Cases:

1. Metropolitan Waterworks and Sewerage System v. Hon. Reynaldo B. Daway and Maynilad
Water Services, Inc., G.R. No. 160732, June 21, 2004

2. Mico Metals Corp. v. Court of Appeals and Philippine Bank of Communications, G.R. No.
117914, Feb. 1, 2002

3. Transfield Philippines, Inc. v. Luzon Hydro Corporation, Australia and New Zealand Banking
Group Limited and Security Bank Corporation, G.R. NO. 146717, Nov. 22, 2004