What is a Bill of Lading?

Bill of lading

A bill of lading is a receipt which acts as a legal document in between the shipper, and the carrier. It is also known as BL or BoL.

Characteristics:

A bill of lading has got some physiognomies which are given below:

Ø  Signature:

The bill of lading gets signed by the shipper first of all, and then by the carrier which is the shipowner or his agent, and finally by the receiver,

Ø  Evidence:

The bill of lading works as an evidence of the contract for the carriage of goods as per the carriage of goods by sea act of 1925,

Ø  Acknowledgement:

The bill of lading works as a prima facie evidence of the receipt of the goods by the carrier,

Ø  Document of title:

The bill of lading is the document of title to goods covered by the bill. The ownership of the goods can be transferred by endorsement, and delivery of the bill of lading. 

Functions of a bill of lading:

There are three major functions of a bill of lading such as,

Ø  it works as an evidence of the contract of carriage,

Ø  it works as an acknowledgement of the goods from the carrier,

Ø  It works as the document of titles to goods.