Skip to content

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

Orrin Co ships goods under a bill of lading made out 'to the order of Pelham Bank'. Pelham Bank wants to pass the right to collect the goods to Dalton Ltd. What is the normal way to do this?

Pelham Bank should endorse the order bill of lading and deliver the original to Dalton Ltd. Endorsement together with delivery of the original document transfers the right to claim the goods, whereas copies, invoices or origin certificates do not.

  1. APelham Bank endorses the bill and delivers it to Dalton LtdCorrect
  2. BPelham Bank sends Dalton Ltd a copy of the bill by email
  3. COrrin Co issues a new commercial invoice in Dalton Ltd's name
  4. DDalton Ltd presents a certificate of origin to the carrier

Explanation

A bill made out to order is negotiable. Title passes by endorsement by the named party and delivery of the original bill. A copy, a new invoice or a certificate of origin does not transfer the right to claim the goods from the carrier.

Did you get it right without looking?

One question tells you little. A timed set on Transportation documents and means of payment shows your real accuracy, how long you take and where you lose marks.

Practise Transportation documents and means of paymentFree diagnostic mock

More Transportation documents and means of payment questions