Okla. Stat. tit. 12A § 7-203

Current through Laws 2024, c. 453.

Section 7-203 - Liability for nonreceipt or misdescription

A party to or purchaser for value in good faith of a document of title, other than a bill of lading, that relies upon the description of the goods in the document may recover from the issuer damages caused by the nonreceipt or misdescription of the goods, except to the extent that:

(1) the document conspicuously indicates that the issuer does not know whether all or part of the goods in fact were received or conform to the description, such as a case in which the description is in terms of marks or labels or kind, quantity, or condition, or the receipt or description is qualified by "contents, condition, and quality unknown", "said to contain" or words of similar import, if such indication is true; or

(2) the party or purchaser otherwise has notice of the nonreceipt or misdescription.

Okla. Stat. tit. 12A, § 7-203

Laws 1961, p. 141, § 7-203; Amended by Laws 2005 , HB 2035, c. 140, § 8, eff. 1/1/2006.

Oklahoma Code Comment

Prior Statutory Provisions:

2 O.S. §§ 9-30, 9-79.

Text and derivation of prior provisions, see Appendix at end of this title.

Comment:

This applies only to warehouse receipts. Bills of lading are governed by a similar provision in Section 7-301 .

This section is substantially the same as former 2 O.S. §9-79. The previous law provided that the warehouseman was liable "to the holder of a receipt." The Commercial Code adds, "purchaser for value in good faith . . . relying upon the description."

Former 2 O.S. § 9-30 stated that a receipt should not be issued except upon actual delivery of commodities into storage in the public warehouse, and no receipt should be issued for a greater quantity than received.