CHAPTER IV - OBLIGATIONS OF THE VENDOR claim secured by a document of title unless a contrary intention appears, warrants: (1) That the document is genuine; (2) That he has a legal right to negotiate or transfer it; (3) That he has knowledge of no fact which would impair the validity or worth of the document; and (4) That he has a right to transfer the title to the goods and that the goods are merchantable or fit for a particular purpose, whenever such warranties would have been implied if the contract of the parties had been to transfer without a document of title the goods represented thereby. Warranties on Negotiation or Assignment 1. That the document is genuine; 2. That he has a legal right to negotiate or transfer it; 3. That he has knowledge of no fact which would impair the validity or worth of the document; 4, That he has a right to transfer the title to the goods; and 5. That the goods are merchantable or fit for a particular purpose. NEGOTIATION ‘The transfer of possession of an instrument, whether voluntary or involuntary, by a person other than the issuer to a person who thereby becomes its holder.?5 ASSIGNMENT The transfer of rights or property.26 Art. 1517. The endorsement of a document of title shall not make the endorser liable for any failure on the part of the bailee who issued the document or previous endorsers thereof to fulfill their respective obligations. Effect of failure of bailee or previous endorsers to fulfill their obligations It shall not make the present endorser liable. Art. 1518. The validity of the negotiation of a negotiable document of title is not impaired by the fact that the negotiation was a breach of duty on the part of the person making the negotiation, or by the fact that the owner of the document was deprived of the possession of the same by loss, theft, fraud, accident, mistake, duress, or conversion, if the person 1200, Black’s Law Dictionary, Tenth Edition, 142, Black's Law Dictionary, Tenth Edition. 97CHAPTER IV - OBLIGATIONS OF THE VENDOR to whom the document was negotiated or a person to whom the document was subsequently negotiated paid value therefor in good faith without notice of the breach of duty, or loss, theft, fraud, accident, mistake, duress or conversion. Art. 1519. If goods are delivered to a baile by the owner or by a person whose act in conveying the title to them to a purchaser in good faith for value would bind the owner and a negotiable document of title is issued for them they cannot thereafter, while in possession of such bailee, be attached by garnishment or otherwise or be levied under an execution unless the document be first surrendered to the bailee or its negotiation enjoined. The bailee shall in no case be compelled to deliver up the actual possession of the goods until the documents surrendered to him or impounded by the court. General Rule: No attachment Exceptions: 1. The document be first surrendered to the bailee; or 2. The documents’ negotiation is enjoined. General Rule: The bailee shall in no case be compelled to deliver up the actual possession of the goods. Exceptions: 1. The document is surrendered to the bailee; or 2. The document is impounded by the court. Art. 1520. A creditor whose debtor is the owner of a negotiable | document of title shall be entitled to such aid from courts ofappropriate | jurisdiction by injunction and otherwise in attaching such document or | in satisfying the claim by means thereof as is allowed at law or in equity | in regard to property which cannot readily be attached or levied upon | by ordinary legal process. Creditor’s remedies He is entitled to such aid from courts of appropriate jurisdiction by | injunction and otherwise in attaching such document or in satisfying the | claim by means thereof as is allowed at law or in equity in regard to property which cannot readily be attached or levied upon by ordinary legal process. Injunction, meaning A court order commanding or preventing an action27 2 see p.904, Black's Law Dictionary, Tenth Edition. | 98