PERSONS TO WHOM GOODS MUST BE

DELIVERED:

1.Persons lawfully entitled to possession of the

goods or his agents
2.Persons entitled to delivery under a non-
negotiable receipt or with written authority
3.Persons in possession of a negotiable receipt
 WAREHOUSEMAN’S LIABILITY FOR
MISDELIVERY

Pursuant to Section 10, the liability is the same as that of a bank paying
a forged check. As the party liable for mis delivery the duty rest upon
the warehouseman of devising appropriate means by which deception
can be avoided.

When the delivery is otherwise than as authorised by subsections (b)

and (c) of Section 9, the liability is for conversion.

CONVERSION - unauthorised assumption and exercise of right of

ownership over goods belonging to another through the alteration of
their condition or the exclusion of the owner’s right.
WAREHOUSEMAN’S DEFENSES FOR
NON-DELIVERY OR MISDELIVERY
1.Loss or destruction of the goods without the fault of the bailee
2.Failure to satisfy the bailee’s lien
3.Failure to surrender a negotiable document of title
4.Lack of willingness to sign acknowledgement
5.Delivery to a claimant with better right
6.Where the document of title is attached by a creditor
7.Receipt by the bailee of a request by or on behalf of the person lawfully
entitled to a right of property or possession in the goods, not to make
such delivery
8.The bailee has information that the delivery about to be made was to one
not lawfully entitled to the possession of the goods
9.Attachment/levy of the goods by a creditor where the document is
surrendered or its negotiation is enjoined or the document is impounded
IN CASE OF ADVERSE CLAIM, THE
BAILEE MAY:

1. Refuse to deliver the goods to anyone of them until he has had

reasonable time to check the validity of the claims.
2. File as action for interpleader and allow the claimants to prove their
claims or in case an action is filed against the bailee, he can set up the
defense of adverse claims.