What is a bill of lading?

A bill of lading is fundamentally a receipt issued by a carrier to the shipper of goods. It acknowledges possession of the goods and acts as proof that the carrier has received the merchandise for transportation. This document outlines the essential details of the shipment, such as the type of goods, quantity, destination, and shipping instructions.

By serving as a receipt, the bill of lading also plays a critical role in shipping because it can be presented to the consignee (the person or entity to whom the shipment is addressed) upon delivery, ensuring that the right party receives the goods. Thus, the essence of a bill of lading is closely tied to the relationship between the shipper and the carrier, affirming that the goods are in transit and highlighting the carrier's obligation to deliver the shipment as specified.

In contrast, the other options describe different aspects of trade and shipping that do not fully capture the specific function and importance of a bill of lading. A bill of lading is not primarily a contract between a seller and buyer; while it does facilitate transportation as part of the broader transaction, it specifically pertains to the carrier and the shipping process rather than the sale itself. Similarly, it is not merely an agreement for freight payment, as it