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For-hire common carriers are required to issue a bill of lading for shipments they accept for transportation. The bill of lading is a contract entered into by two parties.
This regulation applies to for-hire carriers and those who ship goods.
As a contract, the bill of lading serves the same purpose as any other contract entered into between two parties.
The face of the bill of lading provides for the entry of information required for the transportation of the freight.
The reverse side usually contains the terms and conditions of carriage.
However, the bill of lading does differ from the ordinary contract in one respect. The terms and conditions, primarily dealing with claims and liability issues, are prescribed by statute. These terms and conditions are part of the bill of lading contract, whether they are actually printed on the form or not. Participants in the bill of lading contract are assumed to be familiar with these terms and conditions.
There are three distinct functions served by the bill of lading:
Preparation. Bills of lading must be legibly written in ink, indelible pencil, or preferably, typed. It is important that all information be written or typed in the exact space provided for it. It is a good idea to number bills of lading consecutively. Bills of lading issued by common carriers must include: