Answer
Contract made initially between Shipper and the Carrier, which is legally binding to both parties. It governs the relationship between Shipper and carrier. Legal responsibilities of carrier and shipper are defined in the Contract of Carriage. Rights, Liabilities and Obligations of both parties during the carriage goods are mentioned in the Contract. It may have several B/L. It may include many Voyages. Used for transport of goods or passengers.
Few Clauses included are-
1.Payment and schedule of payment.
2.Scope of Services by the shipper during carriage.
3.Dispute Resolution methods.
A B/L normally performs three functions:
- Receipt for the goods — acknowledgement by the carrier that the cargo has been received/shipped.
- Evidence of the contract of carriage — it records the terms on which the goods are being carried.
- Document of title — in appropriate cases, possession/endorsement of the original B/L enables transfer of rights to claim delivery of the goods.