Which type of bill of lading is commonly associated with transfer of title by endorsement to a specific party?

Which type of bill of lading is commonly associated with transfer of title by endorsement to a specific party?

• A. To Order bill of lading
• B. Bearer bill of lading
• C. Straight bill of lading
• D. Clean bill of lading

Answer: (A)

The idea being tested is how ownership of goods can be transferred using a bill of lading. A to order bill of lading is negotiable through endorsement, meaning the shipper can sign the document over to another party and thus transfer title to that party by endorsement and delivery. This makes it the standard instrument for transferring ownership to a specific party during transit, which is common in sales and financing arrangements. In contrast, a bearer bill transfers title simply by possession, not endorsement; a straight bill of lading is issued to a specific consignee and cannot be endorsed to transfer title to another party; a clean bill is about the absence of imperfections or clauses and does not address transfer of title. Therefore, the to order bill of lading best fits the scenario of transferring title by endorsement to a particular party.

The idea being tested is how ownership of goods can be transferred using a bill of lading. A to order bill of lading is negotiable through endorsement, meaning the shipper can sign the document over to another party and thus transfer title to that party by endorsement and delivery. This makes it the standard instrument for transferring ownership to a specific party during transit, which is common in sales and financing arrangements.

In contrast, a bearer bill transfers title simply by possession, not endorsement; a straight bill of lading is issued to a specific consignee and cannot be endorsed to transfer title to another party; a clean bill is about the absence of imperfections or clauses and does not address transfer of title. Therefore, the to order bill of lading best fits the scenario of transferring title by endorsement to a particular party.