LEGAL PRINCIPLE: MARITIME LAW – Bills of Lading – Indorsement – Methods of Indorsing Bills of Lading
PRINCIPLE STATEMENT
Indorsement is effected either by the shipper or consignee writing their name on the back of the bill of lading, which is called an 'indorsement in blank', or by writing 'deliver to I (or order), F', which is called an 'indorsement in full'; a bill of lading which does not contain some such words as 'to order', or 'to order or assigns', or which is endorsed in full, but without such words, is a negotiable instrument.
RATIO DECIDENDI (SOURCE)
"Indorsement is effected either by the shipper or consignee writing his name on the back of the bill of lading, which is called an 'indorsement in blank', or by his writing 'deliver to I (or order), F', which is called an 'indorsement in full'. A bill of lading which does not contain some such words as 'to order', or 'to order or assigns', or which is endorsed in full, but without such words, is a negotiable instrument."
EXPLANATION / SCOPE
Two methods of indorsing bills of lading: (1) Indorsement in blank: Shipper/consignee simply writes name on back—no specified transferee, making bill bearer instrument transferable by delivery. (2) Indorsement in full: Writes “deliver to [named person] (or order)”—specifies transferee, requires further indorsement by that person for subsequent transfer. Negotiability depends on wording: Bills containing “to order,” “to order or assigns,” or indorsed in full with such words: are negotiable instruments, transferable by indorsement and delivery. Bills without order language or indorsed in full without such words: not fully negotiable instruments. This serves: clarifying transfer mechanisms, determining negotiability, and establishing who can further transfer. “In blank” indorsement: makes bill transferable to bearer, simplifies further transfers (delivery alone suffices), but increases risk (anyone holding bill can claim). “In full” indorsement: names transferee, requires their indorsement for further transfer, and provides more control/security. The distinction matters for: determining transferability, establishing who has rights, and assessing negotiability. Understanding indorsement methods is essential for: commercial transactions, determining property rights, and assessing claims under bills of lading. This technical principle governs maritime commerce mechanics