What are the three primary purposes of a Bill of Lading?

The three primary purposes of a Bill of Lading include serving as a receipt for cargo, functioning as a contract for the transportation of goods, and acting as a document of title.

As a receipt of cargo, the Bill of Lading confirms that the carrier has received the goods from the shipper. This is vital for both parties, as it provides proof of delivery and specifies the condition of the cargo at the time of loading.

In its role as a contract for the transportation of goods, the Bill of Lading outlines the terms and conditions under which the carrier is agreeing to transport the goods. This serves to protect both the shipper and the carrier, as it clearly defines their obligations, rights, and liabilities during transit.

Lastly, as a document of title, the Bill of Lading allows for the transfer of ownership of the goods while they are in transit. This means that the holder of the Bill of Lading can claim the goods upon arrival, and it can be transferred to third parties, thus facilitating trade and financing transactions.

The other options involve elements that do not accurately represent the functions of a Bill of Lading. There are no roles like “invoice for services,” “bill for customs clearance,” or “customs declaration” that