The transferee of an order bill of lading acquires both the rights and the liabilities of his transferor.

Question

Quizplus · Accepted Answer

The principle of privity of contract applies to bills of lading, which means that only the parties involved in the contract of carriage (the carrier and the shipper, or their agents) have rights and obligations under the bill of lading. However, the transfer of a bill of lading by endorsement and delivery transfers the rights and liabilities associated with the goods to the transferee, who becomes a party to the contract. Therefore, the statement is true: the transferee of an order bill of lading assumes both the rights and the liabilities of his transferor.

The Transferee of an Order Bill of Lading Acquires Both