Bill of Lading as a Receipt

• A bill of lading acts as a receipt for the quality of goods received on board. After taking goods on board, a carrier signs a bill of lading confirming that the goods match the contract description. It is referred to as "clean" if the goods are received in good condition and are ready to transport.
  
  

Bill of Lading as Evidence

• A bill of lading acts as an evidence of a valid contract of carriage. It includes the full terms of the contract between the consignor and the carrier. A clear bill of lading helps a shipper release the payment of goods from the bank as goods are transferred to the carrier for delivering them to the purchaser.
  
  

Bill of Lading as Contract of Carriage

• A bill of lading is a document that is freely transferable to others. When transferring to a third party, it acts as a contract of carriage. The holder of the bill of lading can take the delivery of the consignment when presenting the bill to the carrier. Any oral or written commitment between the carrier and shipper not present on the bill of lading will not affect the third party for getting the delivery.
  
  

Bill of Lading as Document of Title

• Until the goods are in transit, possession of the bill of lading is considered as constructive possession of the goods. When a seller provides a bill of lading to the buyer, the buyer is deemed to get the symbolic delivery of goods. On the arrival of the ship, the buyer can present the bill to the ship's captain and take the delivery.