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Simple English definitions for legal terms
negotiable bill of lading
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A quick definition of negotiable bill of lading:
A negotiable bill of lading is a document that shows that goods have been received by a carrier or shipper's agent for transportation. It is like a receipt and a contract for shipping all in one. A negotiable bill of lading can be traded or sold to someone else, like money. There are different types of bills of lading, like a clean bill of lading that has no problems with the goods, or an unclean bill of lading that shows there were issues with the goods during shipment.A more thorough explanation:
A negotiable bill of lading is 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 is a document of title, which means that it can be bought, sold, or traded like money.
For example, if a company wants to buy goods from another company, they can use a negotiable bill of lading to pay for the goods. The buyer can give the seller the bill of lading, and the seller can use it to get paid by the carrier when the goods are delivered.
Another example is when a bank provides financing to a company that needs to ship goods. The bank can use the negotiable bill of lading as collateral for the loan. If the company defaults on the loan, the bank can take possession of the bill of lading and use it to recover their money.
In summary, a negotiable bill of lading is a document that represents ownership of goods being shipped and can be used as a form of payment or collateral.