law: The Warehousing (Development and Regulation) Act, 2007
  15. Warranties on
  
  negotiation of warehouse receipt. -
  A person who, for
  
  valuable consideration, negotiates a negotiable warehouse receipt by
  
  endorsement and delivery, including one who assigns for valuable consideration,
  
  a claim secured by a receipt, unless a contrary intention appears, warrants the
  
  following:-
  a.  
  
    that
  
  the receipt is genuine;
  b.  
  
    that
  
  the person has a legal right to negotiate or transfer it;
  c.  
  
    that
  
  the person has no knowledge of any fact that would impair the validity of the
  
  receipt;
  d.  
  
    that
  
  the person has a right to transfer the title to the goods; and
  e.  
  
    that
  
  the goods are merchantable or fit for a particular purpose when those
  
  warranties would have been implied, if the contract of the parties had been to
  
  transfer without a receipt the goods represented by it.