The holder of a negotiable document of title to whom the document has been duly negotiated has legal title to the goods covered by the document.

Question

Quizplus · Accepted Answer

Negotiation of a negotiable document of title, such as a bill of lading or warehouse receipt, to a new holder transfers all rights in the document and the goods it covers. Thus, the new holder obtains legal title to the goods, provided the negotiation was done according to the governing laws and regulations.

The Holder of a Negotiable Document of Title to Whom