A bill of lading will be negotiable if its terms are that the goods are to be delivered to "bearer" or to "the order of" a named person.

Question

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When a bill of lading is made out to "bearer" or to "the order of" a named person, it becomes a negotiable instrument that can be transferred to another party by endorsement or delivery. This allows for the goods to be traded or sold during shipment, which can provide flexibility and liquidity for businesses.

A Bill of Lading Will Be Negotiable If Its Terms