Legal Definitions - lading, bill of

Definition: A document that acknowledges the receipt of goods by a carrier or shipper's agent and the contract for the transportation of those goods. It indicates the receipt of goods for shipment and is issued by a person engaged in the business of transporting or forwarding goods. A bill of lading is a document of title, and a negotiable bill of lading authorizes the carrier or holder of freight to deliver it to the bearer.

Examples:

• B/L: Abbreviation for Bill of Lading.
• Bearer Bill of Lading: A negotiable bill of lading that authorizes the carrier or holder of freight to deliver it to the bearer.
• Clean Bill of Lading: A bill of lading containing no clause or notation qualifying the bill's terms.
• Nonnegotiable Bill of Lading: A straight bill of lading that specifies a consignee to whom the carrier is contractually obligated to deliver the goods.
• Through Bill of Lading: A bill of lading by which a carrier agrees to transport goods to a designated destination, even though the carrier will have to use a connecting carrier for part of the passage.

The examples illustrate different types of bills of lading and their characteristics. For instance, a bearer bill of lading is negotiable and can be transferred to another person, while a clean bill of lading has no qualifications or clauses. A through bill of lading involves multiple carriers to transport goods to a final destination.