Wednesday, November 22, 2006
What is a bill of lading?
Here's a quote from Wikipedia's Bill of Lading article.
It is evidence that a valid contract of carriage exists and it incorporates the full terms of the contract between the consignor and the carrier by reference (i.e. the short form simply refers to the main contract as an existing document, whereas the long form of a bill of lading (connaissement intégral) issued by the carrier sets out all the terms of the contract of carriage);
It is a receipt signed by the carrier confirming whether goods matching the contract description have been received in good condition (a bill will be described as clean if the goods have been received on board in apparent good condition and stowed ready for transport); and
It is also a document of transfer, but not a negotiable instrument, i.e. it governs all the legal aspects of physical carriage but, unlike a cheque or other negotiable instrument, it does not affect ownership of the goods actually being carried. This matches everyday experience in that the contract a person might make with a commercial carrier like FedEx is separate from any contract for the sale of the goods to be carried.