Civil Code > TITLE XVII. CONTRACTS FOR THE CUSTODY, USE OR POSSESSION OF CHATTELS 9

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Chapter 5. Warehousing

Art. 2806 – Definition.

A contract of warehousing is a contract whereby one party, the warehouseman, being duly licensed for the purpose by the public authorities, undertakes to receive and store goods on behalf either of the bailor or of the purchaser of the goods or of a person who received them in pledge.

Art. 2807 – Loss or deterioration of goods.

(1) The warehouseman shall be liable for the preservation of the goods he has received.

(2) He shall not be liable where he shows that the loss or deterioration of the goods is due to force majeure, or to the nature or defects of the goods or their packing.

Art. 2808 – Duty to inform bailor.

The warehouseman shall inform the bailor where the goods undergo changes which seem to call for further measures.

Art. 2809 – Return of goods.

(1) The warehouseman shall store the goods until the expiration of the agreed period.

(2) He may not avail himself of circumstances as a result of which a bailee would be authorized to return the goods before the due date because of unforeseen events.

Art. 2810 – Mixing goods.

(1) The warehouseman may not mix fungible goods with other goods of the same kind and quality without express authority.

(2) The bailor may claim out of goods thus mixed such quantity as corresponds to his share thereof.

(3) The warehousman may return this share without the co-operation of the other bailors.

Art. 2811 – Sale of goods.

(1) After giving the bailor due notice, the warehouseman may sell the goods where they are not removed by the bailor on the date stipulated in the contract.

(2) Where no definite term has been fixed for the storage, he may sell the goods after one year from the date of deposit.

(3) He may in any case sell the goods whenever they are in danger of decay.

Art. 2812 – Disposal of proceeds.

After deduction of the expenses entailed by the sale and other sums due to the bailee, the proceeds of the sale shall be held at the disposal of the persons entitled to them.

Art. 2813 – Receipt and voucher.

(1) Where the bailor so requires, the warehouseman shall give him a receipt for the goods warehoused.

(2) The receipt shall be accompanied by a voucher containing the same information as the receipt.

(3) The receipt and voucher shall be taken from the same counterfoil register, The counterfoil shall be retained by the warehouseman.

Art. 2814 – Particulars in receipt and voucher.

He receipt and voucher shall state:

(a) The name and surname, or trade name, and address of the bailor; and

(b) The place of storage; and

(d) Whether customs duties have been paid on the goods and whether they are insured.

Art. 2815 – Beneficiaries of documents of title.

(1) The receipt and voucher may be made out in the name of the bailor or in that of a third party designated by him.

(2) They may be transferred, either together or separately, by endorsement.

Art. 2816 – Rights of holder of both titles.

(1) A person in possession both of the receipt and of the voucher may demand that the goods stored be handed over to him.

(2) He may also require that the goods be divided up into a number of lots at his expense and that the warehouseman give him a receipt and voucher for each separate lot in exchange for the original titles.

Art. 2817 – Rights of holder of voucher.

A person in possession of the voucher alone shall have a right of pledge on the goods detained by the warehouseman.

Art. 2818 – Transfer of voucher.

(1) Where the voucher alone has been endorsed for the first time, the amount of the debt and interest thereon, and the date on which payment falls due, shall be stated on it.

(2) The endorsement and the above information shall be entered on the receipt and countersigned by the beneficiary of the endorsement.

Art. 2819 – Absence of required information.

(1) Where the endorsement on the voucher fails to state the amount of the debt guaranteed, the goods stored shall be secured to their full value to guarantee the debt.

(2) Where he has paid a sum that was not due, the person in whose name the receipt is made out, or the holder of the receipt, may recover from the first endorsee and from any person holding the voucher in bad faith.

Art. 2820 – Rights of holder of receipt.

(1) A person in possession of the receipt only may inspect the goods stored and take the customary samples.

(2) He may not remove the goods stored unless he deposits with the warehouseman or trustee the sum due at maturity to the pledge.

Art. 2821 – Sale by pledges.

(1) Where he is not paid on maturity and he has drawn up a protest in accordance with the provisions of Art. 781-784 of the Commercial Code, the holder of the voucher may cause the goods to be sold eight days after payment becomes due.

(2) An endorser who has of his own free will paid the holder of the voucher shall be subrogated to the holder’s rights.

(3) He may cause the goods to be sold eight days after the debt has become due.

Art. 2822 – Sale of goods stored.

Where the goods stored have to be sold, either by the warehouseman or by the creditor holding the voucher, the relevant provisions of the chapter on pledges shall apply to the sale.

Art. 2823 – Redress against endorsers.

(1) The person holding the voucher may not bring an action against the endorser before he has caused the goods to be sold.

(2) The time-limits for actions for recovery against successive endorsers shall be as prescribed by Art. 817 (3) of the Commercial Code.

(3) They shall run from the date on which the goods were sold.

Art. 2824 – Non-compliance with required formalities.

(1) The holder of the voucher shall lose his right to recover from the endorsers where he fails to draw up his protest upon maturity or fails to institute, within fifteen days from the date of the protest, proceedings to have the goods sold.

(2) He shall however retain his right to recover from the endorsers of the receipt and from the debtor.

(3) Such right of recovery shall be barred after three years.

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