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V. Shipping Documents When shipment is effected, the seller must deliver to the buyer a complete set of shipping documents as a sign of his performance of the contract and the basis of his negotiating. As to the types of the documents and the number of each of them, they are to be agreed upon by the buyer and the seller in a specific transaction. When goods are transported by road, rail, or air, the contract of carriage takes the form of a consignment note or railway bill of lading or air waybill. In sea transport, an ocean bill of lading or a charter party is adopted instead. 1. The Ocean Bill of Lading The ocean bill of lading, used in sea transport, is an essential document in making a shipment. It serves three functions. First, it is a receipt of the goods given to the shipper by the shipping company/carrier. Second, it is evidence of the contract between the carrier and the shipper for the performance of certain services upon certain conditions. Third, it is also a document of title to the goods, entitling the person named on it to claim the goods when they arrive at the port of destination. And when made out “to order”, it becomes in practice a negotiable instrument, used as security for loans and other purposes. When drawn in this way, it is known as an order bill of lading. The straight bill of lading, on the other hand, is made out to a specific consignee. Such a document is not negotiable. 2. The Air Waybill Besides transport by sea, road, or rail, carriage by air has become popular at present in order to speed up delivery. Instead of a bill of lading, an air waybill is entered into by the airline and the consignor. Like the bill of lading the airway bill serves as a receipt for the goods taken on board and is evidence of the contract of carriage. However, unlike the bill of lading, the air waybill is not a negotiable document or document of title. It cannot transfer ownership of the goods to which it refers. VI. Letters regarding Shipment Letters regard
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