ABSTRACT
The bill of lading, as indicated in Chapter 1, plays a vital role in international commerce where sea carriage is envisaged. Its use is traceable to the 14th century.1 In its primitive form, it was a receipt indicating the nature of the cargo and the quantity. Time, convenience and mercantile practice saw the incorporation of terms of carriage in the bill of lading and its elevation to a document of title, such that possession of the bill of lading was deemed constructive possession of the goods. Recognition of the bill of lading as a symbol for the goods made way for the sale of goods to a third party during transit (that is, while they were on the high seas). Goods were symbolically delivered by endorsement and transfer of the bill of lading.2
Transfer of the bill of lading to the third party did not, however, operate to transfer rights under the bill of lading to the third party, due to the doctrine of privity.3 In order to effect an automatic transfer of contractual rights to the endorsee, the Bills of Lading Act was enacted in 1855. Due to problems caused largely by poor drafting,4 this statute was repealed in 1992, and replaced with the Carriage of Goods by Sea Act 1992.5
