Bill of lading

Updated: Aug 20, 2021

A document used in foreign trade similar in some respect to a delivery note. it sets out the name and address of the customer, the nature of the goods. etc. In carriage by sea there are three copies: one retained by the seller, one given to the master of the ship, one forwarded to the buyer or his agent. The buyer obtains the goods by presenting his copy to the master of the ship. The bill is usually accompanied by a bill of exchange drawn upon the purchaser. Though not legally a document of title it is effective as such inasmuch as a person who has possession of it with the consent of the true owner of the goods can give a good title to an innocent purchaser for value.

Reference: The Penguin Business Dictionary, 3rd edt.

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