ABSTRACT
Introduction 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 (i.e., 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 because of the doctrine of privity. 3 To affect an automatic transfer of contractual rights to the endorsee, the Bills of Lading Act was enacted in 1855. Because of problems caused largely by poor drafting, 4 this statute was repealed in 1992 and replaced with the Carriage of Goods by Sea Act 1992. 5
This chapter considers the nature of a bill of lading, the evidentiary effect of statements made on a bill of lading, and the rights and liabilities of the holder of a bill under both the Bills of Lading Act 1855 and the Carriage of Goods by Sea Act 1992. The latter part of this chapter focuses on the problems created by the Bills of Lading Act 1855 since it provides the necessary backdrop to assess and appreciate the changes instituted by the Carriage of Goods by Sea Act 1992. The concluding part of this chapter addresses electronic bills of lading, the CMI 6 Rules on Electronic Bills of Lading and the Bills of Lading in Europe (BOLERO) 7 Rules.
