Bill of Lading

The bill of lading performs three functions in the carriage of goods by sea: a receipt for the cargo and its apparent order and condition, evidence of the contract of carriage, and a document of title that can be transferred to pass constructive possession of the goods. Liability for cargo loss or damage is set by the Hague Rules, the Hague-Visby Rules, or the Hamburg Rules, depending on the regime incorporated. A clean bill notes no defects; a claused bill records damage at loading. Negotiable order bills are distinguished from straight (non-negotiable) and sea waybills.