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

Mara Ltd sold goods to Delvin Co and obtained an order bill of lading naming Mara Ltd as consignee. Mara Ltd wishes to pass title to the goods to Delvin Co while the goods are still at sea. What must Mara Ltd do?

Mara Ltd must endorse the order bill of lading and deliver it to Delvin Co. Negotiable bills pass the right to the goods by endorsement and delivery, whereas an email notice or a non-negotiable waybill does not transfer the document of title.

  1. AEndorse the bill of lading and deliver it to Delvin CoCorrect
  2. BSend Delvin Co a written notice by email, with no need to transfer the bill
  3. CAsk the carrier to issue a new sea waybill to Delvin Co

Explanation

An order bill is negotiable. Rights in the goods are transferred by endorsement and delivery of the bill. A mere notice does not transfer the document of title, and a sea waybill is non-negotiable and would not achieve this in the same way.

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