BILL OF LADING DEFINEDgffgfgfg

1.
A bill of lading may be defined as a written acknowledgment of the receipt of
goods and an agreement to transport and to deliver them at a specified place to a
person named or on his order. It comprehends all methods of transportation.
1.1
The nature of a Bill of Lading is as follows: (a) is a contract in itself and the
parties are bound by its terms (b) it is a receipt (c) it is a symbol of the goods covered
by it
1.2
The bill of lading is the law between the parties and is legal evidence of the
contract. As such it is an actionable document.1
1.3As a receipt means that the issuance of a bill of lading carries the presumption
that the goods were delivered to the carrier issuing the bill, for immediate shipment
and it is nowhere questioned that a bill of lading is prima facie evidence of the
receipt of the goods by the carrier. Since it is a prima facie evidence of receipt, the
carrier may be allowed to present proof that he received the cargo on a date
different from the date of the bill of lading.2
2.Since it also is a symbol of the goods, it is considered a document of title to the
goods.
2.1
A document of title is any document used in the ordinary course of business in
the sale or transfer of goods, as proof of the possession or control of goods, or
authorizing the possessor of the document to transfer or receive, either by
endorsement or delivery, goods represented by such document
3.

If negotiable in form, a Bill of Lading may be a negotiable document of title

3.1
It is negotiable if it states that the goods referred to therein will be delivered
to the bearer or the order of any person named in such document
3.2
A bill of lading stamped with the words non negotiable but containing words
that the goods are deliverable to the order of the person named therein is a
negotiable bill of lading.
3.3
It is non-negotiable if it states that the goods referred to therein will be
delivered to persons specified or named in such document
1 Philippine American General Insurance Co., Inc. v. Sweet Lines Inc., 212 SCRA 194,
203 [August 5, 1992]
2 Saludo Jr. v. Court of Appeals, 207 SCRA 498, 508 [March 23, 1992]

3.4
It is not a negotiable instrument because it is not payable in a sum certain in
money
3.5
A purchaser in good faith and for value of the goods covered by a negotiable
bill of lading is superior to the unpaid sellers right of stoppage in transit. 3
4.The effectivity of the bill occurs upon its delivery to and acceptance by the shipper.
It is presumed that the stipulations in the bill are, in the absence of fraud,
concealment or improper conduct, known to the shipper, and he is generally bound by
his acceptance whether he reads the bill or not.4
5.As to contents, the shipper as well as the carrier of merchandise or goods may
mutually demand that a bill of lading be made, stating: (a) the name, surname and
residence of the shipper (b) the name, surname and residence of the carrier (c) the
name, surname, residence of the person to whom or to whose order the goods are to
be sent and whether they are to be delivered to the bearer of said bill (d) the
description of the goods, with a statement of their kind, of their weight, and of the
external marks or signs of the packages in which they are contained (e) the costs of
transportation (f) the date on which shipment is made (g) the place of delivery to the
carrier (h) the place and the time at which delivery to the consignee shall be made,
and (i) the indemnity to be paid by the carrier in case of delay, if there should be an
agreement on this matter.5
5.1In a bill of lading for maritime commerce, the following must be included: (a) the
name, registry, and tonnage of the vessel (b) the name of the captain and his domicile
(c) the port of loading and that of unloading (d) the name of the shipper (e) the name
of the consignee, if the bill of lading is issued in the name of a specified person (f)
the quantity, quality, number of packages and marks of the merchandise and, (g) the
freightage and primage stipulated. This bill may also be issued to bearer, to order or
in the name of a specified person, and must be signed within 24 hours, after the cargo
has been received on board, the shipper being entitled to demand the unloading at
the expense of the captain should the latter not sign it, and in every case, the losses
and damages suffered thereby.6

3 Article 1535, Civil Code

4 Magellan mfg. Marketing Corporation v. Court of Appeals, 22 SCRA 674 [1968]
5 Article 350, Code of Commerce
6 Article 707, Code of Commerce

5.2As to liability, a stipulation exempting the carrier from liability occasioned by its
own negligence or providing for unqualified limitation of liability to an agreed
valuation are invalid by reason of public policy. Only a stipulation limiting the liability
to an agreed valuation unless the shipper declares a higher value and pays a higher
rate of freight is valid and enforceable.7
5.3A stipulation limiting liability is to protect the common carrier as it obliges the
shipper to notify it of the amount that it may be liable for in case of a loss of the
goods so that it can take appropriate measures, such as insurance, to protect itself.
5.4
The stipulation limiting liability must be: (a) reasonable and just under the
circumstances, and (b) fairly and freely agreed upon.
6.
The form of the bill of lading is not material. If it contains an
acknowledgement by the carrier of the receipt of goods for transportation, it is in
legal effect, a bill of lading.
6.1
The Bill of Lading constitutes the legal evidence of the contract of
transportation as all disputes between the parties regarding the execution and
performance of the contract shall be decided by its contents. The law admits no
exception other than falsity and material error in its drafting.8
6.2But the execution of a bill of lading is not essential to a contract of transportation.
The making of such is not obligatory. The fact that a Bill of Lading is not issued does
not preclude the existence of a contract of transportation.
6.3
In the absence of a bill of lading, the respective claims of the parties shall be
decided by the legal proofs that each one may submit in support of his claims. 9
However: (a) if the value is PHP 300.00 or less, testimonial evidence is allowed (b)if
the value exceeds PHP 300.00, testimonial evidence is not sufficient, there should be
proof through other writing/s.
6.4Note that the Electronic Commerce Act 10allows data messages or electronic
documents to be used in lieu of transport writing or paper documents.
7 H.E. Heacock Company v. Macondray & Company, Inc. No. 16598 [October 3,
1921]
8 Article 353, Code of Commerce
9 Article 354, Code of Commerce
10 Sections 25, 26, RA 8792

7.If transport is by air, what is issued is an airway bill.

7.1
A ticket ordinarily refers to passengers but when it refers to a thing it covers
baggage, while a bill of lading always refers to goods that are denominated usually as
cargo.11
8.A clean bill of lading is one in common form without any memorandum in the
margin or on its face showing that the goods are to be carried on deck contains any
defect. A foul bill of lading is one that carried a memorandum.
8.1
On board bill of lading is one that states that the goods have been received on
board the vessel that will transport such goods. A received for shipment bill of lading
is one that states that the goods have been received without specifying the vessel
that will transport the goods.
8.2
A custody bill of lading is one where the goods are already received by the
carrier but the vessel indicated therein has not yet arrived in port. A port bill of
lading, the vessel indicated in the bill of lading transporting the goods is already in
port.
8.3
A through bill of lading is one issued by a carrier who is obliged to use the
facilities of other carriers as well as his own facilities for the purpose of transporting
the goods from the city of the seller to the city of the buyer, which bill of lading is
honoured by the second and other interested carriers who do not issue their own
lading.
PARTIES TO A BILL OF LADING
1.
The parties to a bill of lading are: (a) shipper/consignor a person to be
transported or owner of the goods to be transported; one who gives rise to the
contract of transportation (b)
carrier one who binds himself to transport persons,
things or news as the case may be; one engaged in the business of carrying goods for
others for hire (c)consignee the party to whom the carrier is to deliver the things
being transported; one to whom the carrier may lawfully make delivery in accordance
with its contract of carriage
2.

Note that the shipper and consignee may be 1 person.

11 Article 352, Code of Commerce