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

Tamsin Ltd sells machinery to a buyer overseas and ships it by sea. The carrier issues a document that acknowledges receipt of the goods, records the terms of carriage and can be used to transfer control of the goods while they are at sea. Which document is this?

A negotiable bill of lading is the document described. It is a receipt for the goods, evidence of the terms of carriage and a document of title, so endorsing and delivering it can transfer rights to the goods while they are still at sea.

  1. AA negotiable bill of ladingCorrect
  2. BA commercial invoice
  3. CA certificate of origin
  4. DAn insurance certificate

Explanation

A bill of lading performs three functions: a receipt for the goods, evidence of the contract of carriage, and a document of title. Only a negotiable bill of lading allows control of the goods to be transferred while they are afloat. An invoice and a certificate of origin do not give title to the goods.

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