If the BL cannot be negotiated, what document is furnished?

If the BL cannot be negotiated, what document is furnished?

• A. Deed of sale with notary attached to the BL
• B. Endorsement with signature
• C. Deliver the BL
• D. Negotiable BL

Answer: (A)

The key idea here is how ownership is proven when a bill of lading cannot be transferred. A bill of lading can function as a negotiable document of title, meaning it can be endorsed and handed over to someone else to show they hold the goods. When the bill cannot be negotiated, you don’t have a transferable title document from the BL itself. In that situation, a Deed of Sale, properly notarized, is used and attached to the BL to show that ownership of the goods has passed through a sale. The notary provides legal authentication, making the sale and the attachment to the BL credible to customs and other authorities. This combination effectively substitutes for a transferable title so that the goods can be released or correctly documented for processing. Endorsement would require a negotiable bill of lading, which isn’t possible here. Delivering the BL alone doesn’t establish ownership. A negotiable BL contradicts the scenario since the question specifies the BL cannot be negotiated.

The key idea here is how ownership is proven when a bill of lading cannot be transferred. A bill of lading can function as a negotiable document of title, meaning it can be endorsed and handed over to someone else to show they hold the goods. When the bill cannot be negotiated, you don’t have a transferable title document from the BL itself. In that situation, a Deed of Sale, properly notarized, is used and attached to the BL to show that ownership of the goods has passed through a sale. The notary provides legal authentication, making the sale and the attachment to the BL credible to customs and other authorities. This combination effectively substitutes for a transferable title so that the goods can be released or correctly documented for processing.

Endorsement would require a negotiable bill of lading, which isn’t possible here. Delivering the BL alone doesn’t establish ownership. A negotiable BL contradicts the scenario since the question specifies the BL cannot be negotiated.