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ACCA Applied Skills · Corporate and Business Law (Global) · Transportation documents and means of payment

Kessel Ltd ships goods to a buyer overseas. The goods are carried by sea and the carrier issues a sea waybill naming the buyer as consignee. Compared with a negotiable bill of lading, what is the key feature of the sea waybill?

A sea waybill is not a document of title. The carrier delivers to the named consignee once identity is shown, with no need to surrender the original. It cannot be endorsed to others and offers no assurance of payment to the seller.

  1. AIt is not a document of title, so the goods are delivered to the named consignee on proof of identityCorrect
  2. BIt can be endorsed to a third party while the goods are at sea
  3. CIt must be surrendered in original form before delivery
  4. DIt guarantees that the buyer will pay the seller

Explanation

A sea waybill is a receipt and evidence of the contract of carriage but is not a document of title and is not negotiable. Delivery is made to the named consignee on identification, without surrender of the document. Hence it cannot be endorsed, and it gives no payment guarantee.

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