Tex. Bus. & Com. Code § 7.503 · Subchapter E. WAREHOUSE RECEIPTS AND BILLS OF LADING: NEGOTIATION AND TRANSFER
DOCUMENT OF TITLE TO GOODS DEFEATED IN CERTAIN CASES.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A document of title confers no right in goods against a person that before issuance of the document had a legal interest or a perfected security interest in the goods and that did not:
(1) deliver or entrust the goods or any document covering the goods to the bailor or the bailor's nominee with actual or apparent authority to ship, store, or sell; with power to obtain delivery under Section 7.403; or with power of disposition under Section 2.403, 2A.304(a)(2), 2A.305(a)(2), or 9.320 or other statute or rule of law; or
(2) acquiesce in the procurement by the bailor or its nominee of any document.
(b) Title to goods based upon an unaccepted delivery order is subject to the rights of any person to which a negotiable warehouse receipt or bill of lading covering the goods has been duly negotiated. That title may be defeated under Section 7.504 to the same extent as the rights of the issuer or a transferee from the issuer.
(c) Title to goods based upon a bill of lading issued to a freight forwarder is subject to the rights of any person to which a bill issued by the freight forwarder is duly negotiated. However, delivery by the carrier in accordance with Subchapter D pursuant to its own bill of lading discharges the carrier's obligation to deliver.
Notes and commentary — not statutory text
History
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 2.25, eff. July 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 122 (S.B. 1593), Sec. 1, eff. September 1, 2005.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BC/htm/BC.7.htm
- Text hash
- sha256 089949e7ceeda9cb356d49d77209fa6d0fca90898df1acf61442b0d9f01ec314
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Business & Commerce Code
- Tex. Bus. & Com. Code § 2.403POWER TO TRANSFER; GOOD FAITH PURCHASE OF GOODS; "ENTRUSTING".Printed as Section 2.403, 2A.304(a)(2), 2A.305(a)(2), or 9.320
- Tex. Bus. & Com. Code § 2A.304SUBSEQUENT LEASE OF GOODS BY LESSOR.Printed as Section 2.403, 2A.304(a)(2), 2A.305(a)(2), or 9.320
- Tex. Bus. & Com. Code § 2A.305SALE OR SUBLEASE OF GOODS BY LESSEE.Printed as Section 2.403, 2A.304(a)(2), 2A.305(a)(2), or 9.320
- Tex. Bus. & Com. Code § 7.403OBLIGATION OF WAREHOUSE OR CARRIER TO DELIVER; EXCUSE.Printed as Section 7.403
- Tex. Bus. & Com. Code § 7.504RIGHTS ACQUIRED IN ABSENCE OF DUE NEGOTIATION; EFFECT OF DIVERSION; STOPPAGE OF DELIVERY.Printed as Section 7.504
- Tex. Bus. & Com. Code § 9.320BUYERS OF GOODS.Printed as Section 2.403, 2A.304(a)(2), 2A.305(a)(2), or 9.320
Cited by 2 provisions
Provisions in this library whose text cites Tex. Bus. & Com. Code § 7.503. Each shows the citation as that text prints it.
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.