Carriage of goods by sea is carried out on the basis of a contract of carriage between the carrier and consignor. The contract of carriage is evidenced by transport document so called bill of lading or sea waybill. The bill of lading has been commonly...
Carriage of goods by sea is carried out on the basis of a contract of carriage between the carrier and consignor. The contract of carriage is evidenced by transport document so called bill of lading or sea waybill. The bill of lading has been commonly using as a transport document and is a typical document of title. Then, among the bills of lading, the surrender B/L is newly introduced by some traders in practice. But the surrender B/L is not recognized the legal effectiveness by the court or statutory law. So, this transport document may arise misunderstandings and disputes between concerned parties. Some of the problems related to the commercial use of the surrender B/L seem to be minor but others are not. This article considered the problems of the using of the surrender B/L in the L/C transaction. In particular, the effectiveness of document is very imprtant factor in L/C transaction because the L/C transaction is done by documents only. The surrender B/L may increase the risk of impossibility of settlement to the beneficiary and the negotiating bank can't acquire a security for their prepayment. I suggested in this article we have to substitute the surrender B/L with sea waybill.