Role of Bill of Lading in an International Sa...

Role of Bill of Lading in an International Sales Transaction

Author Name : Dr. Monica Raje

ABSTRACT

The bill of lading is an important document in international sales transactions and performs various functions which determine the rights and liabilities of various parties to an international sales transaction. A bill of lading is a document issued by, or on behalf of, a carrier of goods by sea to a sender, known as the shipper or consignor, with whom he has contracted for the carriage of goods destined for delivery to a receiver, known as the consignee. This paper seeks to understand the role of bill of lading in an international contract for sale of goods. In order to fully understand the functions, characteristics and importance of a bill of lading the paper will study the various types of bill so lading used by parties in sea transportation. The paper then studies the three main functions performed by a bill of lading i.e. a receipt for goods shipped, as evidence of the contract of carriage, and as a document of title. The paper concludes by assessing how the bill of lading helps in reducing the risks involved to the various parties to an international sales transaction.

Key words: Bill of lading, carrier, shipper, document of title