Question & AnswerQ&A (Act No. 2137)
Every warehouse receipt must include: (a) location of the warehouse, (b) date of issue, (c) consecutive number of the receipt, (d) statement of delivery terms, (e) rate of storage charges, (f) description of goods or packages, (g) signature of the warehouseman or authorized agent, (h) ownership of goods if warehouseman owns them, and (i) statement of advances and liabilities for which the warehouseman claims a lien.
A negotiable receipt states that goods will be delivered to the bearer or to order of a specified person. A non-negotiable receipt states that goods will be delivered to the depositor or another specified person and cannot be negotiated.
The word "duplicate" must be plainly placed on the face of every duplicate negotiable receipt except the first original receipt issued.
The warehouseman must deliver the goods if the demand is accompanied by an offer to satisfy the lien, surrender of a negotiable receipt with proper endorsements, and readiness to sign an acknowledgment of delivery.
The warehouseman can refuse to deliver goods if there is a lawful excuse provided by Act No. 2137, such as outstanding liens or adverse claims, and must prove the existence of such excuse if challenged.
The warehouseman may give written notice demanding payment by a specified date, advertise and auction the goods if lien is unpaid, and use proceeds to satisfy his claims including reasonable expenses. Special procedures apply for perishable or hazardous goods.
A warehouseman who issues or aids in issuing such receipts is guilty of a crime punishable by imprisonment for up to five years, a fine of up to ten thousand pesos, or both for each offense.
The negotiator warrants that the receipt is genuine, that he has a legal right to negotiate or transfer it, has knowledge of no fact impairing the receipt's validity or worth, and has the right to transfer the title to the goods which are merchantable or fit for a particular purpose.
Purchasers who acquire receipts for value without notice of fraud or unauthorized alterations acquire full rights as if the receipt had not been altered. Material and fraudulent alterations do not excuse warehousemen from delivering goods as originally issued but may affect liability to those who made the alteration or took notice.