What are the three traditional roles of a bill of lading?

What are the three traditional roles of a bill of lading?

• A. Receipt for goods, document of title to goods, and evidence of the contract of carriage.
• B. Insurance certificate, receipt for payment, and evidence of ownership.
• C. Cargo manifest, bill of lading number, and proof of customs clearance.
• D. Priority document for stowage, insurance, and release order.

Answer: (A)

The bill of lading traditionally serves three core functions: it acts as a receipt for the goods when they are loaded, it functions as a document of title that can be used to transfer ownership, and it evidences the contract of carriage between the shipper and the carrier. As a receipt, it confirms that the carrier has received the exact goods described (quantity, description, condition) for transport. As a document of title, possession of the bill—especially if it is negotiable—can control who may claim the goods at their destination, enabling transfer of rights through endorsement or delivery. As evidence of the contract of carriage, the bill sets out the terms and conditions of the voyage, including obligations, responsibilities, and freight terms. Other items like an insurance certificate, a cargo manifest, or a separate release order are not the bill of lading and do not fulfill these three roles, though they may accompany or relate to the shipment.

The bill of lading traditionally serves three core functions: it acts as a receipt for the goods when they are loaded, it functions as a document of title that can be used to transfer ownership, and it evidences the contract of carriage between the shipper and the carrier.

As a receipt, it confirms that the carrier has received the exact goods described (quantity, description, condition) for transport. As a document of title, possession of the bill—especially if it is negotiable—can control who may claim the goods at their destination, enabling transfer of rights through endorsement or delivery. As evidence of the contract of carriage, the bill sets out the terms and conditions of the voyage, including obligations, responsibilities, and freight terms.

Other items like an insurance certificate, a cargo manifest, or a separate release order are not the bill of lading and do not fulfill these three roles, though they may accompany or relate to the shipment.