Tex.
Bus. & Com. Code Section 7.503
Document of Title to Goods Defeated in Certain Cases
(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 (Obligation of Warehouse or Carrier to Deliver; Excuse); or with power of disposition under Section 2.403, 2A.304 (Subsequent Lease of Goods by Lessor)(a)(2), 2A.305 (Sale or Sublease of Goods by Lessee)(a)(2), or 9.320 (Buyers of Goods) 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 (Rights Acquired in Absence of Due Negotiation; Effect of Diversion; Stoppage of Delivery) 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.
Source:
Section 7.503 — Document of Title to Goods Defeated in Certain Cases, https://statutes.capitol.texas.gov/Docs/BC/htm/BC.7.htm#7.503 (accessed Apr. 29, 2024).
