§80104 Form and Requirements for Negotiation

Summary

A negotiable bill of lading can be transferred to someone else by signing it or by handing it over, depending on how it is written and what the carrier promises. A signature can name a person or be left "in blank" (no name). If the bill says the goods go to the order of a named person, that named person must sign. The bill can also be passed by delivery when the carrier agrees to deliver to the order of a named person and that person or a later signer has left a blank endorsement. Anyone who has the bill can negotiate it, no matter how they got it, if the carrier must deliver to them or if the bill allows negotiation by delivery. If a transfer breaks a duty or the owner lost the bill by fraud, theft, mistake, duress, or accident, the transfer still counts if the person who got the bill paid for it, acted in good faith, and did not know about the problem. If the person who was issued the bill keeps it after selling or pledging the goods or bill, then later transferring it to someone who pays for it in good faith and without knowing about the prior sale or pledge has the same effect as if the first buyer had approved that transfer.