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This entry was published on 2014-12-26
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Obligation of Bailee to Deliver; Excuse
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 7, PART 4
Section 7--403. Obligation of Bailee to Deliver; Excuse.

(a) A bailee shall deliver the goods to a person entitled under a
document of title if the person complies with subsections (b) and (c),
unless and to the extent that the bailee establishes any of the

(1) delivery of the goods to a person whose receipt was rightful as
against the claimant;

(2) damage to or delay, loss, or destruction of the goods for which
the bailee is not liable;

(3) previous sale or other disposition of the goods in lawful
enforcement of a lien or on a warehouse's lawful termination of storage;

(4) the exercise by a seller of its right to stop delivery pursuant to
Section 2--705 or by a lessor of its right to stop delivery pursuant to
Section 2-A--526;

(5) a diversion, reconsignment, or other disposition pursuant to
Section 7--303;

(6) release, satisfaction, or any other personal defense against the
claimant; or

(7) any other lawful excuse.

(b) A person claiming goods covered by a document of title shall
satisfy the bailee's lien if the bailee so requests or if the bailee is
prohibited by law from delivering the goods until the charges are paid.

(c) Unless a person claiming the goods is a person against which the
document of title does not confer a right under Section 7--503(a):

(1) the person claiming under a document shall surrender possession or
control of any outstanding negotiable document covering the goods for
cancellation or indication of partial deliveries; and

(2) the bailee shall cancel the document or conspicuously indicate in
the document the partial delivery or the bailee is liable to any person
to which the document is duly negotiated.