Necessaries are the things needed for the sustenance, clothing, dwelling, medical

attendance, transportation according to the financial capacity of the family of the

incapacitated.
Option money refers to the privilege given to the buyer in which he is given the
priority of goods for sale because of the consideration certain in money he has
provided to the seller which is separate and distinct of the purchase price.
Earnest money refer to the consideration given by the buyer to the seller as part of
the purchase price after the contract of sale is perfected.
Negotiable document of title is a document of title in which it is stated the goods
referred therein will be delivered to the bearer or to the order of the person
specified therein.
Non negotiable document of title is a document of title in which it is stated the
goods referred therein will be delivered to a specified person.
Document of title to goods refers to any bill of lading, dock warrant, quedan,
warehouse receipt or any other document use in the sale or transfer of goods as
proof of control and possession of such goods, authorizing or purporting to authorize
the possessor of such document to transfer or received, either by endorsement or
by delivery of the good represented by such document.

Represents goods not money

Receipt of a bailee or orders upon a bailee
Serves as contract between the parties.
Evidence of transfer of title and possession of goods.
Refers to future delivery
Other forms, bill of lading, quedan, dock warrant and warehouse receipt.

Bill of lading refers to the contract or receipt issued by the carrier for the transport
of goods and its delivery of the said goods to a specified person or to the order or to
bearer.
Dock warrant refers to the instrument issued or given by the dock owners to the
importer of goods recognizing his title of the said goods
Warehouse receipt refers to the contract or receipt for the goods deposited with a
warehouse man containing his undertaking to hold and deliver said goods to a
specified person, to the order or to bearer.

DOCUMENT OF TITLE

Refers to the goods not money

It is a receipt of a bailee or orders upon a bailee
It an evidence of transfer and possession of goods
It serve as contract between the parties
Refers to future delivery
Other forms, bill of lading, quedan, dock warrant, warehouse receipt

TWO CLASSESS:
1. NEGOTIABLE DOCUMENT OF TITLE
a. By the terms of the document which the bailee undertake the delivery
of the goods to the bearer or to the order of a specified person and
maybe negotiated:
i. By mere delivery
1. By the terms of the document, the bailee undertake to
deliver the goods to the bearer.
2. By simply handling over the document to another person
ii. By indorsement plus delivery
1. By the terms of the document, the bailee undertake to
deliver the good to the order of a specified person.
2. By signing his name at the back of the document which
constitute as indorsement (not sufficient if not signed)
3. May contain the following options:
a. By signing his name at the back of the document
without specifying a name, termed (blank
indorsement)
b. By signing his name at the back of the document
and specifying that it will be delivered to the
bearer.
c. By signing his name at the back of the document
and specifying that it will be delivered to the order
of a specified person.
4. If indorsed to a specified person then such person can
indorsed it again in blank, to the bearer or to the order of
a specified person.
2. NON-NEGOTIABLE DOCUMENT OF TITLE
a. By the terms of the document which the bailee undertakes to deliver
the good to a specified person.
b. Cannot be negotiated even if there is a statement in the document
that it is negotiable.
i. If indorse, no effect whatsoever, does not transfer ownership or
possession

ii. It can only be transferred or assigned to another person through

sale or donation.