☰ Revisor of Missouri


Chapter 400

< > Effective - 28 Aug 2017, 2 histories    bottom

  400.7-504.  Rights acquired in the absence of due negotiation — effect of diversion — seller's stoppage of delivery. — (a)  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.

  (b)  In the case of a transfer 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:

  (1)  by those creditors of the transferor which could treat the transfer as void under section 400.2-402 or 400.2A-308;

  (2)  by 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;

  (3)  by 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; or

  (4)  as against the bailee, by good-faith dealings of the bailee with the transferor.

  (c)  A diversion or other change of shipping instructions by the consignor in a nonnegotiable bill of lading which causes the bailee not to deliver the goods to the consignee defeats the consignee's title to the goods if the goods have been delivered to a buyer in ordinary course of business or a lessee in ordinary course of business and, in any event, defeats the consignee's rights against the bailee.

  (d)  Delivery of the goods pursuant to a nonnegotiable document of title may be stopped by a seller under section 400.2-705 or a lessor under section 400.2A-526, subject to the requirements of due notification in those sections.  A bailee that honors the seller's or lessor's instructions is entitled to be indemnified by the seller or lessor against any resulting loss or expense.


(L. 1963 p. 503 § 7-504, A.L. 2017 H.B. 34)

---- end of effective  28 Aug 2017 ----

use this link to bookmark section  400.7-504

 - All versions
Effective End
400.7-504 8/28/2017
400.7-504 8/28/1963 8/28/2017

Click here for the Reorganization Act of 1974 - or - Concurrent Resolutions Having Force & Effect of Law
In accordance with Section 3.090, the language of statutory sections enacted during a legislative session are updated and available on this website on the effective date of such enacted statutory section. Revisor Home    

Other Information
 Recent Sections Editorials May Be Cited As Tables & Forms Multiple Enact
Repeal & Transfer Definitions End Report

Site changes Pictures Contact

Other Links
Legislative Research Oversight MOLIS
Library MO WebMasters
Missouri Senate
State of Missouri
Missouri House