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  • Curso Draft Survey Shipping Law The Functions of BLs

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    Guido Morlachetti
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    Curso Draft Survey Shipping Law The functions of BLs (2)

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    6 views3 pages

    Curso Draft Survey Shipping Law The Functions of BLs

    Uploaded by

    Guido Morlachetti

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 3
    et ‘THE COMMERCIAL BACKGROUND The four functions of the bill of lading ‘We shall now examine in more detall how the four functions of the bill of lading intereate 20 satly the expectations of buyers and sellers in sles where risk passes on loading and payment ie ‘made agamst delivery of documents rather than delirery of the good themes Receipt ‘The bill of lading will state the condition and quantity of the goods when they are mansfeered into the custody of the carrier. It will also stae the date om which they were loaded, and will 'sentify the carrying vessel as well asthe ports ofoading sad discharge. twill usually be prepared by the consignor,the party who isthe current owner of the goods to be leaded onto the vessel. In doing so, twill rely om the mate's receipt’, which ae the ship's records ofthe cargo loaded and Presenred to am agent of the carrier, such as the captain of che vessel (the ship's ‘master, for signature It is common for bills of lading to be issued in sets of three originals, Once the bills of Jading have been signed, they willbe issued to the party handing over custody of the goods to the carries This party is usally che current owner of the goods in question and is referred to as the shipper’ or the consignor'.The carer will usually be the shipowner, bu this is nt always the ‘ase The carcier may, in fact, have chartered or subchartered the vessel ‘The sale contact and, where applicable, che letter of credit, will usually require thatthe bills of lading tendered for payment to the buyer or the bank constitute what ae called ‘shipped, ‘clean’ bills oftading ‘Whese the goods ae eransferred into the custody of the cuter when loaded onto the ves, ‘he bill of lading wl be a ‘shipped’ bill lading ‘shipped’ bill will enable a buyer to whom risk passes on londing to check whether the goods atthe time of loading match up tothe description ‘the contract of sale. in contrast, where the goods are transferred into the carriers custody a2 an carlier stage — for example, on delivery tothe carriers warehouse at che port of loading ~ the hill of lading will bea ‘ecsived for shipment bil of lading Such a bill can be turned into a-shipped?” Dill fit is subsequently marked by he carrer ot ts agent ro that effet, ‘clean’ ill of lading is one that contains an acknowledgment by the person on whose behalf the bills were signed that the goods described therein were loaded in apparent good order and condition’. I the bil of lading contains adverse comments at regards the condition ofthe goods on loading, iis called a ‘caused bill ofading Document transferring constructive possession ‘The bil of lading wal baveon its face a space identifying the party to whom delivery of the goods ‘sto be made when the vese reaches its por of dacharge This party is known at te ‘consignee although it obtains no contractual rights to cake delivery merely by reason of being designed ts such-"The consignors the original contracting party retains the right vo pve new delivery instruc Hons to the carver, so long as itis sll in possesion of the bil of lading’ Furthermore, bill of lading wall not simply idenify a party asthe consignee. IF X is the named consignee, the bil of laing will not instruct che shipowner simply to deliver to X, but rather to make delivery tthe order of X or assigns’ (an ‘order bil). Alternatively the delivery instructions may be left lank ‘without naming consignee, or may simply state'to onde” orto érder or assigns” (a ‘bears’ bill) § once. pty aed onsgone iy ori poss nge on be ond speed i the io ang be consgne dei naseosige whe ateton completing soos age Se Kv e's ba Ud [DTTNT eke 6 Wiel eda 1846) 1138 ‘THE FOUR FUNCTIONS OF THE BILL OF LADING \7 Such wording constivutes an undertaking by the carrier wo the consignor thatthe cargo will be delivered to the person presenting an original bill of lading, whether that person be the named consignee or 2 subsequent holder of the bill of lading” The unique characteristic of the Dill of Jading is that this intial delivery undertaking is tansferabe to subsequent holders of the document ‘without the need for any farther involvement of the carrer, so transfering constructive possession (0 the new holder of the document, Where a ‘bearer bil is involved, constructive possession can be twanefesred by simple physieal ansftc However, where an ‘order bil is involved, something more 's requlzed. I must also be ‘indorsed’ by the named consignee signing the reverse of the bill Two types of indorsement are possible: a special indorsement, which identifies the indorsee; and an {ndorsemeot in blank, which does not, After an indorsement in blank, the bill of lading ean subse quently be transferred in the saane manner as @ bearer bil. In contrast, where any other type of document is smvolved, constructive possession can be wansferred only ifthe party who gave the delivery undertaking expressly acknowledges tha twill now honour tha undertaking in vou of «third pay. This process is kown as ‘sttornment’The bil of lading is, however, the sly doct- ‘mont under which, a common law, consmuctive possesion can be transferred without an storm iment! The transfer of constructive possession will occur automatically on transfer ofthe bill of lading provided tha such isthe intention of the transferor. However, bill of lading that only deslg- ‘ates & consignee and lacks the addtional wording ‘to order’ or 'o order or asighs’is known as 3 ‘straight’ bill Such a Dill can be used to effec only a single transfer of possession, from the consignor to the consignee? Constructive possession will entite the holder ofthe bill fling to claim the goods from the carrier, as bailee, at the port of discharge and to sue the carrer in conversion i the goods have been

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