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The bill of lading is the contract between the shipper and the carrier. The shipper, like the other parties, gets protection from this contract. Primarily, it protects the shipper from theft and fraud. The document explains exactly what the cargo is and how much is required to be transported.
Specifically, who issues it, and the responsible parties. In summary, a bill of lading is a legal document that serves three vital purposes in the shipping process: as a receipt for shipping, as a title of goods, and as a contract of carriage. The carrier serves the bill of lading when they take control of the goods.
A bill of lading must be transferable, and serves three main functions: it is a conclusive receipt, i.e. an acknowledgement that the goods have been loaded; and. it contains or evidences the terms of the contract of carriage; and. it serves as a document of title to the goods, subject to the nemo dat rule.
An example of a bill of lading is the form that is provided by a moving company to a third-party carrier, which will be delivering store fixtures for them to a retail location. The third-party then hands the bill of lading over to the store as a receipt for the goods, once the delivery has been made.