Maritime Law Practice Exam

The bill of lading governs both the allocation of risk and the transfer of title, and it does so based on the contract of carriage and the specific terms printed on or incorporated into the bill. This document isn’t just a receipt or a record of shipment; it embodies the agreement between the shipper and carrier and often between seller and buyer about who bears loss and when ownership passes. The risk of loss is defined by the terms in the carriage contract and the bill itself, stating when the carrier assumes or shifts responsibility. At the same time, transfer of title is governed by the bill as a document of title—endorsement and delivery of the bill (or delivery of the goods in possession) typically evidencing the passage of ownership, in line with the contract terms. So the bill of lading sets out both who bears risk and when title changes hands, as determined by the contractual terms and the bill’s provisions.