Commercial Code section 7404

A bailee that in good faith has received goods and delivered or otherwise disposed of the goods according to the terms of a document of title or pursuant to this division is not liable for the goods even if:

(1)

the person from which the bailee received the goods did not have authority to procure the document or to dispose of the goods; or

(2)

the person to which the bailee delivered the goods did not have authority to receive the goods.

Source: Section 7404, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=COM§ionNum=7404.­ (accessed Jun. 2, 2025).

Last Updated

May 12, 2025

§ 7404’s source at ca​.gov