{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.7-502.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.7-502.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.7-502.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.7-502.html"}],"law_id":86028,"edition_id":1,"section_id":86028,"structure_id":15835,"section_number":"8.7-502","catch_line":"Rights acquired by due negotiation","history":"Code 1950, \u00a7\u00a7 61-44, 61-50 to 61-52; 1964, c. 219; 2004, c. 200.","full_text":"1\n\nSubject to \u00a7\u00a7 8.7-205 and 8.7-503, a holder to whom a negotiable document has been duly negotiated acquires thereby:a\n\ntitle to the document;b\n\ntitle to the goods;c\n\nall rights accruing under the law of agency or estoppel, including rights to goods delivered to the bailee after the document was issued; andd\n\nthe direct obligation of the issuer to hold or deliver the goods according to the terms of the document free of any defense or claim by him except those arising under the terms of the document or under this title. In the case of a delivery order the bailee’s obligation accrues only upon acceptance and the obligation acquired by the holder is that the issuer and any endorser will procure the acceptance of the bailee.2\n\nSubject to § 8.7-503, title and rights so acquired are not defeated by any stoppage of the goods represented by the document or by surrender of such goods by the bailee, and are not impaired even though (a) the negotiation or any prior negotiation constituted a breach of duty, (b) any person has been deprived of possession of a negotiable tangible document or control of a negotiable electronic document by misrepresentation, fraud, accident, mistake, duress, loss, theft or conversion, or (c) a previous sale or other transfer of the goods or document has been made to a third person.","order_by":null,"text":{"0":{"id":308082,"text":"Subject to \u00a7\u00a7 8.7-205 and 8.7-503, a holder to whom a negotiable document has been duly negotiated acquires thereby:","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"next_prefix":"1a"},"1":{"id":308083,"text":"title to the document;","type":"section","prefixes":["1","a"],"prefix":"a","entire_prefix":"1a","prefix_anchor":"1a","level":2,"prior_prefix":"1","next_prefix":"1b"},"2":{"id":308084,"text":"title to the goods;","type":"section","prefixes":["1","b"],"prefix":"b","entire_prefix":"1b","prefix_anchor":"1b","level":2,"prior_prefix":"1a","next_prefix":"1c"},"3":{"id":308085,"text":"all rights accruing under the law of agency or estoppel, including rights to goods delivered to the bailee after the document was issued; and","type":"section","prefixes":["1","c"],"prefix":"c","entire_prefix":"1c","prefix_anchor":"1c","level":2,"prior_prefix":"1b","next_prefix":"1d"},"4":{"id":308086,"text":"the direct obligation of the issuer to hold or deliver the goods according to the terms of the document free of any defense or claim by him except those arising under the terms of the document or under this title. In the case of a delivery order the bailee’s obligation accrues only upon acceptance and the obligation acquired by the holder is that the issuer and any endorser will procure the acceptance of the bailee.","type":"section","prefixes":["1","d"],"prefix":"d","entire_prefix":"1d","prefix_anchor":"1d","level":2,"prior_prefix":"1c","next_prefix":"2"},"5":{"id":308087,"text":"Subject to § 8.7-503, title and rights so acquired are not defeated by any stoppage of the goods represented by the document or by surrender of such goods by the bailee, and are not impaired even though (a) the negotiation or any prior negotiation constituted a breach of duty, (b) any person has been deprived of possession of a negotiable tangible document or control of a negotiable electronic document by misrepresentation, fraud, accident, mistake, duress, loss, theft or conversion, or (c) a previous sale or other transfer of the goods or document has been made to a third person.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1d"}},"ancestry":[{"id":15835,"edition_id":1,"name":"Warehouse Receipts and Bills of Lading: Negotiation and Transfer","identifier":"5","label":"part","depth":2,"order_by":1,"parent_id":13810,"metadata":{},"date_created":"2026-06-26 04:00:18","date_modified":"2026-06-26 04:00:18","permalink":{"id":283559,"object_type":"structure","relational_id":15835,"identifier":"5","token":"8.7\/5","url":"\/8.7\/5\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13810,"edition_id":1,"name":"Commercial Code \u2014 Warehouse Receipts, Bills of Lading and Other Documents of Title","identifier":"8.7","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:45:56","date_modified":"2026-06-26 03:45:56","permalink":{"id":283429,"object_type":"structure","relational_id":13810,"identifier":"8.7","token":"8.7","url":"\/8.7\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":83251,"structure_id":15835,"section_number":"8.7-501","catch_line":"Form of negotiation and requirements of \"due negotiation\"","url":"\/8.7-501\/","token":"8.7\/5\/8.7-501","metadata":false},{"id":86028,"structure_id":15835,"section_number":"8.7-502","catch_line":"Rights acquired by due negotiation","url":"\/8.7-502\/","token":"8.7\/5\/8.7-502","metadata":false},{"id":61107,"structure_id":15835,"section_number":"8.7-503","catch_line":"Document to goods defeated in certain cases","url":"\/8.7-503\/","token":"8.7\/5\/8.7-503","metadata":false},{"id":83770,"structure_id":15835,"section_number":"8.7-504","catch_line":"Rights acquired in the absence of due negotiation; effect of diversion; seller's stoppage of delivery","url":"\/8.7-504\/","token":"8.7\/5\/8.7-504","metadata":false},{"id":67496,"structure_id":15835,"section_number":"8.7-505","catch_line":"Endorser not a guarantor for other parties","url":"\/8.7-505\/","token":"8.7\/5\/8.7-505","metadata":false},{"id":85687,"structure_id":15835,"section_number":"8.7-506","catch_line":"Delivery without endorsement; right to compel endorsement","url":"\/8.7-506\/","token":"8.7\/5\/8.7-506","metadata":false},{"id":73201,"structure_id":15835,"section_number":"8.7-507","catch_line":"Warranties on negotiation or delivery of receipt or bill","url":"\/8.7-507\/","token":"8.7\/5\/8.7-507","metadata":false},{"id":82645,"structure_id":15835,"section_number":"8.7-508","catch_line":"Warranties of collecting bank as to documents","url":"\/8.7-508\/","token":"8.7\/5\/8.7-508","metadata":false},{"id":72052,"structure_id":15835,"section_number":"8.7-509","catch_line":"Receipt or bill; when adequate compliance with commercial contract","url":"\/8.7-509\/","token":"8.7\/5\/8.7-509","metadata":false}],"previous_section":{"id":83251,"structure_id":15835,"section_number":"8.7-501","catch_line":"Form of negotiation and requirements of \"due negotiation\"","url":"\/8.7-501\/","token":"8.7\/5\/8.7-501","metadata":false},"next_section":{"id":61107,"structure_id":15835,"section_number":"8.7-503","catch_line":"Document to goods defeated in certain cases","url":"\/8.7-503\/","token":"8.7\/5\/8.7-503","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.7-502\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1964, chapter 219; in 2004, chapter 200<\/a>.<\/p>","references":false,"refers_to":[{"id":75975,"section_number":"8.7-205","catch_line":"Title under warehouse receipt defeated in certain cases","order_by":null,"url":"\/8.7-205\/"},{"id":61107,"section_number":"8.7-503","catch_line":"Document to goods defeated in certain cases","order_by":null,"url":"\/8.7-503\/"}],"permalink":{"id":283565,"object_type":"law","relational_id":86028,"identifier":"8.7-502","token":"8.7\/5\/8.7-502","url":"\/8.7-502\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.7-502\/","token":"8.7\/5\/8.7-502","dublin_core":{"Title":"Rights acquired by due negotiation","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.7-502","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

1.<\/span> Subject to \u00a7\u00a7 8.7-205<\/a> and 8.7-503<\/a>, a holder to whom a negotiable document has been duly negotiated acquires thereby: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

a.<\/span> title to the document; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> title to the goods; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> all rights accruing under the law<\/span> of agency or estoppel, including rights to goods delivered to the bailee after the document was issued; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> the direct obligation of the issuer to hold or deliver the goods according to the terms of the document free of any defense or claim by him except those arising under the terms of the document or under this title. In the case of a delivery order<\/span> the bailee’s obligation accrues only upon acceptance and the obligation acquired by the holder is that the issuer and any endorser will procure the acceptance of the bailee. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Subject to § 8.7-503<\/a>, title and rights so acquired are not defeated by any stoppage of the goods represented by the document or by surrender of such goods by the bailee, and are not impaired even though (a) the negotiation or any prior negotiation constituted a breach of duty, (b) any person has been deprived of possession<\/span> of a negotiable tangible document or control of a negotiable electronic document by misrepresentation, fraud<\/span>, accident, mistake, duress, loss, theft or conversion, or (c) a previous sale or other transfer of the goods or document has been made to a third person. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nRIGHTS ACQUIRED BY DUE NEGOTIATION (\u00a7 8.7-502)\n\n1. Subject to \u00a7\u00a7 8.7-205 and 8.7-503, a holder to whom a negotiable document\nhas been duly negotiated acquires thereby:\n\n a. title to the document;\n\n b. title to the goods;\n\n c. all rights accruing under the law of agency or estoppel, including rights\n to goods delivered to the bailee after the document was issued; and\n\n d. the direct obligation of the issuer to hold or deliver the goods according\n to the terms of the document free of any defense or claim by him except those\n arising under the terms of the document or under this title. In the case of a\n delivery order the bailee’s obligation accrues only upon acceptance and\n the obligation acquired by the holder is that the issuer and any endorser will\n procure the acceptance of the bailee.\n\n2. Subject to § 8.7-503, title and rights so acquired are not defeated by\nany stoppage of the goods represented by the document or by surrender of such\ngoods by the bailee, and are not impaired even though (a) the negotiation or any\nprior negotiation constituted a breach of duty, (b) any person has been deprived\nof possession of a negotiable tangible document or control of a negotiable\nelectronic document by misrepresentation, fraud, accident, mistake, duress,\nloss, theft or conversion, or (c) a previous sale or other transfer of the goods\nor document has been made to a third person.\n\nHISTORY: Code 1950, \u00a7\u00a7 61-44, 61-50 to 61-52; 1964, c. 219; 2004, c. 200.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}