Bill of lading (B/L) is a document which the carrier issue to a shipper. According to the British law, it can be categorize the Bill of lading into 3 significant figures that is 1) as receipt for goods shipped[1]2) as evidence of the contract of carriage[2]and 3) as a document of title[3]which are transferable by endorsement and grants lading holder to call the carrier to deliver the goods stated in the B/L.[4]
This essay aims to consider the 3 important questions base on the English law as following:
1. Does the Nemo dat quod non habet maxim[5] apply on the B/L?
In nutshell, this maxim can be explained that a person does not have the proper right; he may not assign such right to another. This general principal is excepted in case of negotiable instrument[6] .The document of title which deem to be negotiable instrument must have a significant qualification that is the transferee may obtain better right than transferor .[7]
2. The transfer of the B/L grants right to file suit to the transferee?
Following the Privity of Contract doctrine, the contract is only binding agreed parties, however the Carriage of Good by Sea Act 1992 section 2 (1) provide that the lawful holder of a bill of lading has the right to file suit[8]; accordingly ,the lawful transferee gains the right to litigate from L/C.
3. Does the title of goods transfer to the transferee at the same time which transfers the bill of Lading?
Bill of lading is document of title in meaning of possession of the goods, the lawful holder acquire only possession. The transfer of title of goods hinge on the sale contract and the Sale of Good Act 1979.
[1] John F Wilson, Carriage of Goods by Sea(7th edn, Pearson Education Limited 2010)118
[2] John F Wilson, Carriage of Goods by Sea(7th edn, Pearson Education Limited 2010)129
[3] John F Wilson, Carriage of Goods by Sea(7th edn, Pearson Education Limited 2010)132
[4] Indira Carr, International Trade Law(4th edn, Routledge-Cavendish2010)182
[5] Translate into English as No one can give who does not possess
[6] Jstor,’the modern law review (September 1962)<http://www.jstor.org/pss/1092362>accessed 12 November 2010
[7] Ivamy.E.R.Hardy,Payne and Ivamy’s Carriage of Goods by Sea(13th edn,Butterworths,1989)92
[8] East West Corp v DKBS 1912 [2003] 1 Lloyd’s Rep 239
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