A Bill of Lading serves which functions?

• A. Receipt of goods
• B. Contract of carriage
• C. Document of title
• D. All of the above

Answer: (D)

A Bill of Lading is a multi-role document that sits at the center of the shipping transaction, encapsulating three essential functions. First, it acts as a receipt for the goods: the carrier acknowledges that it has received the cargo on board, describes the goods, and notes their condition at loading. This confirms what the shipper delivered and is the basis for any later claims if something goes wrong.

Second, it serves as the contract of carriage: it outlines the agreement between the shipper and the carrier to transport the goods to a stated destination under agreed terms, including responsibilities, routing, and freight. This makes the B/L the documentation of the arrangement governing the transport.

Third, it can function as a document of title: in its negotiable form, the B/L represents ownership of the goods and can be endorsed or transferred, allowing the holder to claim delivery or use the document as collateral in trade finance. Whether this title function applies depends on whether the bill is negotiable, but in practice many B/Ls serve this role.

So, the instrument is commonly used as receipt, contract of carriage, and document of title, which is why “all of the above” is the best answer.