2018 New Mexico Statutes
Chapter 55 - Uniform Commercial Code
Article 7 - Documents of Title
Section 55-7-203 - Liability for nonreceipt or misdescription.

A party to or purchaser for value in good faith of a document of title, other than a bill of lading, that relies upon the description of the goods in the document may recover from the issuer damages caused by the nonreceipt or misdescription of the goods, except to the extent that:

(1) the document conspicuously indicates that the issuer does not know whether all or part of the goods in fact were received or conform to the description, such as a case in which the description is in terms of marks or labels or kind, quantity or condition or the receipt or description is qualified by "contents, condition, and quality unknown", "said to contain" or words of similar import, if the indication is true; or

(2) the party or purchaser otherwise has notice of the nonreceipt or misdescription.

History: 1953 Comp., § 50A-7-203, enacted by Laws 1961, ch. 96, § 7-203; 2005, ch. 144, § 59.

OFFICIAL COMMENTS

UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.

Prior Uniform Statutory Provision. — Former Section 7-203 [55-7-203 NMSA 1978].

Changes. — Changes to this section are for style only.

This section is a simplified restatement of existing law as to the method by which a bailee may avoid responsibility for the accuracy of descriptions which are made by or in reliance upon information furnished by the depositor. The issuer is liable on documents issued by an agent, contrary to instructions of its principal, without receiving goods. No disclaimer of the latter liability is permitted.

Cross Reference. — Section 7-301 [55-7-301 NMSA 1978].

"Conspicuous". Section 1-201 [55-1-201 NMSA 1978].

"Document of title". Section 1-201.

"Goods". Section 7-102 [55-7-102 NMSA 1978].

"Good Faith". Section 1-201.

"Issuer". Section 7-102.

"Notice". Section 1-202 [55-1-202 NMSA 1978].

"Party". Section 1-201.

"Purchaser". Section 1-201.

"Receipt of goods". Section 2-103 [55-2-103 NMSA 1978].

"Value". Section 1-204 [55-1-204 NMSA 1978].

Repeals and reenactments. — Laws 2005, ch. 144, § 59, effective January 1, 2006, repealed former 55-7-203 NMSA 1978 as enacted by Laws 1961, ch. 96, § 7-203, and enacted a new section. Except for style changes, there is no difference between the former law and the new law. Pursuant to 12-2A-14 NMSA 1978, the 2005 revision is considered an amendment rather than a new enactment.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 15A Am. Jur. 2d Commercial Code §§ 47, 52; 78 Am. Jur. 2d Warehouses § 48.

Right of purchaser of warehouse receipt against warehouseman, 38 A.L.R. 1205.

Provision in warehouseman's receipt limiting liability as applicable where warehouseman converts property, 99 A.L.R. 266.