In British English the term relates to ship transport only, and in American English to any type of transportation of goods. Lord Justice Blackburn defined a bill of lading as “A writing signed on behalf of the owner of ship in which goods are embarked, acknowledging the receipt of the Goods, and undertaking to deliver them at the end of the voyage, subject to such conditions as may be mentioned in the bill of lading. Therefore, it can be stated that the bill of lading was introduced to provide a receipt to the shipper in the absence of the owners. It was this new avenue of trade that produced the bill of lading in much the same form straight bill of lading pdf we know today.
Although the term “bill of lading” is well known and well understood, it may become obsolete. The principal use of the bill of lading is as a receipt issued by the carrier once the goods have been loaded onto the vessel. There are two types where bill of lading can be used as carrier’s receipt for goods. The first is on board bill of lading, also known as clean bill of lading. Clean bill of lading is used when there is no discrepancy between description filled by shipper and the actual goods shipped on board. If the carrier finds out that the bill of lading is different from goods on board, one can provide contradictory evidence on clean bill of lading.
It is valid as long as in the hand of the carrier, but once it is transferred and negotiated to the third party, it cannot be rebutted and the carrier can no longer mark discrepancy. The second is claused bill of lading. Claused bill of lading is used when there is some discrepancy between description in the bill of lading and the actual goods. For claused bill of lading, one can mark only when the goods are loaded. The bill of lading from carrier to shipper can be used as an evidence of the contract of carriage by the fact that carrier has received the goods and upon the receipt the carrier would deliver the goods.
In this case, the bill of lading would be used as a contract of carriage. In this case, the bill of lading can be used if shipper does not properly ship the goods than the shipper cannot receive the bill of lading from the carrier. Eventually, the shipper would have to deliver the bill of lading to the seller. In this case, the bill of lading is used as a contract of carriage between seller and carrier.
It is because the third party cannot examine the actual shipment and can only pay attention to the document itself, not survey or examination of the shipment itself. However, the bill of lading will rarely be the contract itself, since the cargo space will have been booked previously, perhaps by telephone, email or letter. The preliminary contract will be acknowledged by both the shipper and carrier to incorporate the carrier’s standard terms of business. Rules will be automatically annexed to the bill of lading, thus forming a statutory contract. When the bill of lading is used as a document of title, it is particularly related to the case of buyer. When the buyer is entitled to received goods from the carrier, bill of lading in this case performs as document of title for the goods.
There are two types of bill of lading that can perform as document of title. They are straight bill of lading and order bill of lading. Straight bill of lading is a bill of lading issued to a named consignee that is not negotiable. In this case, the bill of lading should be directed only to one specific consignee indicated on the bill of lading.
Order bill of lading is the opposite from a straight bill of lading and there is no specific or named consignee. Therefore, an order bill of lading can be negotiated to a third party. Bills of lading may take various forms, such as on-board and received-for-shipment. An on-board bill of lading denotes that merchandise has been physically loaded onto a shipping vessel, such as a freighter or cargo plane.