Text of the provision
Art. 1513. A person to whom a negotiable document of title has been duly negotiated acquires thereby:
(1) Such title to the goods as the person negotiating the document to him had or had ability to convey to a purchaser in good faith for value and also such title to the goods as the person to whose order the goods were to be delivered by the terms of the document had or had ability to convey to a purchaser in good faith for value; and
(2) The direct obligation of the bailee issuing the document to hold possession of the goods for him according to the terms of the document as fully as if such bailee had contracted directly with him.
(n)
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
A person to whom a negotiable document is duly negotiated acquires the title to the goods the negotiator could convey, plus the direct obligation of the bailee to hold the goods for him.
Related provisions
- Article 1510 — 'Not Negotiable' Marking.
- Article 1518 — Negotiation Despite Breach of Duty.
Cases interpreting this article
- Authorities on this article will be added here as each is verified against primary sources.