{"data":{"id":"us-nd/n.d.-cent.-code-41-07-33","jurisdiction":"us-nd","citation":"N.D. Cent. Code § 41-07-33","heading":"(7-504) Rights acquired in absence of due negotiation - Effect of diversion - Stoppage of delivery","body":"1.A transferee of a document of title, whether negotiable or non-negotiable, to which the document has been delivered but not duly negotiated, acquires the title and rights that its transferor had or had actual authority to convey.\n2.In the case of a transfer of a non-negotiable document of title, until but not after the bailee receives notice of the transfer, the rights of the transferee may be defeated:\na.By those creditors of the transferor which could treat the transfer as void under section 41-02-47 or 41-02.1-38;\nb.By a buyer from the transferor in ordinary course of business if the bailee has delivered the goods to the buyer or received notification of the buyer's rights;\nc.By a lessee from the transferor in ordinary course of business if the bailee has delivered the goods to the lessee or received notification of the lessee's rights; or\nd.As against the bailee, by good-faith dealings of the bailee with the transferor.\n3.A diversion or other change of shipping instructions by the consignor in a non-negotiable bill of lading which causes the bailee not to deliver the goods to the consignee defeats the consignee's title to the goods if the goods have been delivered to a buyer in ordinary course of business or a lessee in ordinary course of business and, in any event, defeats the consignee's rights against the bailee.\n4.Delivery of the goods pursuant to a non-negotiable document of title may be stopped by a seller under section 41-02-84 or a lessor under section 41-02.1-74, subject to the requirements of due notification in those sections. A bailee that honors the seller's or lessor's instructions is entitled to be indemnified by the seller or lessor against any resulting loss or expense.","path":["Title 41 Uniform Commercial Code","Chapter 41-07 Documents Of Title"],"source_url":"https://ndlegis.gov/cencode/t41c07.pdf","current_through":"2026-07-31T11:12:02","vintage":"","retrieved_at":"2026-09-02T21:04:14Z","sha256":"e294f66ede1347e9e9d1746accaf0aad084a48a6934fddb69219a86065fd83dd","source_id":"us-nd","stale":true,"prev":"us-nd/n.d.-cent.-code-41-07-32","next":"us-nd/n.d.-cent.-code-41-07-34"},"notice":"GroundRules: Original legal text. Not legal advice."}