{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.7-504.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.7-504.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.7-504.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.7-504.html"}],"law_id":83770,"edition_id":1,"section_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","history":"Code 1950, \u00a7\u00a7 61-44, 61-45; 1964, c. 219; 2004, c. 200.","full_text":"1\n\nA transferee of a document, whether negotiable or nonnegotiable, to whom the document has been delivered but not duly negotiated, acquires the title and rights that his transferor had or had actual authority to convey.2\n\nIn the case of a nonnegotiable document, until but not after the bailee receives notification of the transfer, the rights of the transferee may be defeated:a\n\nby those creditors of the transferor who could treat the sale as void under § 8.2-402 or § 8.2A-308; orb\n\nby a buyer from the transferor in ordinary course of business if the bailee has delivered the goods to the buyer or received notification of his rights; orc\n\nby a lessee from the transferor in ordinary course of business if the bailee has delivered the goods to the lessee or received notification of the lessee’s rights; ord\n\nas against the bailee by good faith dealings of the bailee with the transferor.3\n\nA diversion or other change of shipping instructions by the consignor in a nonnegotiable bill of lading that causes the bailee not to deliver to the consignee defeats the consignee’s title to the goods if they have been delivered to a buyer or lessee in ordinary course of business and, in any event, defeats the consignee’s rights against the bailee.4\n\nDelivery pursuant to a nonnegotiable document may be stopped by a seller under § 8.2-705 or a lessor under § 8.2A-526, subject to the requirement of due notification there provided. A bailee honoring the seller’s or lessor’s instructions is entitled to be indemnified by the seller or lessor against any resulting loss or expense.","order_by":null,"text":{"0":{"id":300286,"text":"A transferee of a document, whether negotiable or nonnegotiable, to whom the document has been delivered but not duly negotiated, acquires the title and rights that his transferor had or had actual authority to convey.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"next_prefix":"2"},"1":{"id":300287,"text":"In the case of a nonnegotiable document, until but not after the bailee receives notification of the transfer, the rights of the transferee may be defeated:","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"2a"},"2":{"id":300288,"text":"by those creditors of the transferor who could treat the sale as void under § 8.2-402 or § 8.2A-308; or","type":"section","prefixes":["2","a"],"prefix":"a","entire_prefix":"2a","prefix_anchor":"2a","level":2,"prior_prefix":"2","next_prefix":"2b"},"3":{"id":300289,"text":"by a buyer from the transferor in ordinary course of business if the bailee has delivered the goods to the buyer or received notification of his rights; or","type":"section","prefixes":["2","b"],"prefix":"b","entire_prefix":"2b","prefix_anchor":"2b","level":2,"prior_prefix":"2a","next_prefix":"2c"},"4":{"id":300290,"text":"by a lessee from the transferor in ordinary course of business if the bailee has delivered the goods to the lessee or received notification of the lessee’s rights; or","type":"section","prefixes":["2","c"],"prefix":"c","entire_prefix":"2c","prefix_anchor":"2c","level":2,"prior_prefix":"2b","next_prefix":"2d"},"5":{"id":300291,"text":"as against the bailee by good faith dealings of the bailee with the transferor.","type":"section","prefixes":["2","d"],"prefix":"d","entire_prefix":"2d","prefix_anchor":"2d","level":2,"prior_prefix":"2c","next_prefix":"3"},"6":{"id":300292,"text":"A diversion or other change of shipping instructions by the consignor in a nonnegotiable bill of lading that causes the bailee not to deliver to the consignee defeats the consignee’s title to the goods if they have been delivered to a buyer or lessee in ordinary course of business and, in any event, defeats the consignee’s rights against the bailee.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2d","next_prefix":"4"},"7":{"id":300293,"text":"Delivery pursuant to a nonnegotiable document may be stopped by a seller under § 8.2-705 or a lessor under § 8.2A-526, subject to the requirement of due notification there provided. A bailee honoring the seller’s or lessor’s instructions is entitled to be indemnified by the seller or lessor against any resulting loss or expense.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.7-504\/","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":[{"id":61107,"section_number":"8.7-503","catch_line":"Document to goods defeated in certain cases","order_by":null,"url":"\/8.7-503\/"}],"refers_to":[{"id":56678,"section_number":"8.2-402","catch_line":"Rights of seller's creditors against sold goods","order_by":null,"url":"\/8.2-402\/"},{"id":87075,"section_number":"8.2-705","catch_line":"Seller's stoppage of delivery in transit or otherwise","order_by":null,"url":"\/8.2-705\/"},{"id":79922,"section_number":"8.2A-308","catch_line":"Special rights of creditors","order_by":null,"url":"\/8.2A-308\/"},{"id":83435,"section_number":"8.2A-526","catch_line":"Lessor's stoppage of delivery in transit or otherwise","order_by":null,"url":"\/8.2A-526\/"}],"permalink":{"id":283573,"object_type":"law","relational_id":83770,"identifier":"8.7-504","token":"8.7\/5\/8.7-504","url":"\/8.7-504\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.7-504\/","token":"8.7\/5\/8.7-504","dublin_core":{"Title":"Rights acquired in the absence of due negotiation; effect of diversion; seller’s stoppage of delivery","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.7-504","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

1.<\/span> A transferee of a document, whether negotiable or nonnegotiable, to whom the document has been delivered but not duly negotiated, acquires the title and rights that his transferor had or had actual authority to convey. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> In the case of a nonnegotiable document, until but not after the bailee receives notification of the transfer, the rights of the transferee may be defeated: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

a.<\/span> by those creditors<\/span> of the transferor who could treat the sale as void under § 8.2-402<\/a> or § 8.2A-308<\/a>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> by a buyer from the transferor in ordinary course of business if the bailee has delivered the goods to the buyer or received notification of his rights; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> by a lessee from the transferor in ordinary course of business if the bailee has delivered the goods to the lessee or received notification of the lessee’s rights; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> as against the bailee by good faith dealings of the bailee with the transferor. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A diversion<\/span> or other change of shipping instructions by the consignor in a nonnegotiable bill of lading that causes the bailee not to deliver to the consignee defeats the consignee’s title to the goods if they have been delivered to a buyer or lessee in ordinary course of business and, in any event, defeats the consignee’s rights against the bailee. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Delivery pursuant to a nonnegotiable document may be stopped by a seller under § 8.2-705<\/a> or a lessor under § 8.2A-526<\/a>, subject to the requirement of due notification there provided. A bailee honoring the seller’s or lessor’s instructions is entitled to be indemnified by the seller or lessor against any resulting loss or expense. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nRIGHTS ACQUIRED IN THE ABSENCE OF DUE NEGOTIATION; EFFECT OF DIVERSION;\nSELLER’S STOPPAGE OF DELIVERY (\u00a7 8.7-504)\n\n1. A transferee of a document, whether negotiable or nonnegotiable, to whom the\ndocument has been delivered but not duly negotiated, acquires the title and\nrights that his transferor had or had actual authority to convey.\n\n2. In the case of a nonnegotiable document, until but not after the bailee\nreceives notification of the transfer, the rights of the transferee may be\ndefeated:\n\n a. by those creditors of the transferor who could treat the sale as void under\n § 8.2-402 or § 8.2A-308; or\n\n b. by a buyer from the transferor in ordinary course of business if the bailee\n has delivered the goods to the buyer or received notification of his rights;\n or\n\n c. by a lessee from the transferor in ordinary course of business if the\n bailee has delivered the goods to the lessee or received notification of the\n lessee’s rights; or\n\n d. as against the bailee by good faith dealings of the bailee with the\n transferor.\n\n3. A diversion or other change of shipping instructions by the consignor in a\nnonnegotiable bill of lading that causes the bailee not to deliver to the\nconsignee defeats the consignee’s title to the goods if they have been\ndelivered to a buyer or lessee in ordinary course of business and, in any event,\ndefeats the consignee’s rights against the bailee.\n\n4. Delivery pursuant to a nonnegotiable document may be stopped by a seller\nunder § 8.2-705 or a lessor under § 8.2A-526, subject to the\nrequirement of due notification there provided. A bailee honoring the\nseller’s or lessor’s instructions is entitled to be indemnified by\nthe seller or lessor against any resulting loss or expense.\n\nHISTORY: Code 1950, \u00a7\u00a7 61-44, 61-45; 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}}