Endorsement by banks on the B/L
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milindparab
- Posts: 3
- Joined: Fri Apr 05, 2019 5:22 pm
Endorsement by banks on the B/L
A B/L is asked showing consignee "TO ORDER" and endorsed in blank. If the 'shipper' has forgot to endorse the B/L in blank and even negotiating bank missed to notice this lapse, does the negotiating bank/confirming bank as well as opening bank have any right to endorse this B/L further. Will shipping line accept this B/L, which shows endorsements from all other parties except the SHIPPER?
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larryBacon
- Posts: 689
- Joined: Fri Apr 05, 2019 5:26 pm
Endorsement by banks on the B/L
If the shipper has failed to endorse all of the originals, the documents are discrepant. Title in the goods cannot be passed until the shipper so endorses the original bills of lading.
Laurence A. J. Bacon
laurence_aj@hotmail.com
Laurence A. J. Bacon
laurence_aj@hotmail.com
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AbdulkaderBazara
- Posts: 256
- Joined: Fri Apr 05, 2019 5:15 pm
Endorsement by banks on the B/L
B/L must be endorsed by the shipper.
Endorsement by banks on the B/L
Due to too many such queries from the trading community, the LLoyd's of London "Maritime Asia/Intermodal Asia" magazine has commissioned me to write an article on this subject of endorsements on BL. The title of this article is "What 'To Order' and 'Blank Endorsed' Actually Mean?"
I often explain this highly technical topic in my workshops with a story approach so that participants can remember it easily and it can also increase the recall rate after many years.
Endorsement is like building a small bridge named "BL" across a small creek, with wooden planks of about one foot wide and ten feet long. The first piece of plank is placed by the shipper, then the second plank by the second endorser and the third piece by the third endorser, so on and so forth.
If the first plank placed by the shipper is unsecured, it falls over the creek and breaks into pieces, can a man go across the "BL" bridge? Obviously not. The man is named Mr. Title.
The same thing with endorsement in BL, if the first endorser, made by the shipper, has defects, title cannot pass with his defective endorsement, then the second endorser has no power to make any further endorsements. In legal terms we call it "no capacity to act or perform".
At times, it is difficult to explain a complicated subject by a simple story. And some professionals have the tendency to explain a complicated subject by a more complicated approach, putting in more jargons to confuse the enquirer. As a facilitator in trade seminars, I try not to do so.
I am from www.tolee.com
[edited 5/22/01 4:01:50 PM]
[edited 11/17/01 3:00:17 AM]
I often explain this highly technical topic in my workshops with a story approach so that participants can remember it easily and it can also increase the recall rate after many years.
Endorsement is like building a small bridge named "BL" across a small creek, with wooden planks of about one foot wide and ten feet long. The first piece of plank is placed by the shipper, then the second plank by the second endorser and the third piece by the third endorser, so on and so forth.
If the first plank placed by the shipper is unsecured, it falls over the creek and breaks into pieces, can a man go across the "BL" bridge? Obviously not. The man is named Mr. Title.
The same thing with endorsement in BL, if the first endorser, made by the shipper, has defects, title cannot pass with his defective endorsement, then the second endorser has no power to make any further endorsements. In legal terms we call it "no capacity to act or perform".
At times, it is difficult to explain a complicated subject by a simple story. And some professionals have the tendency to explain a complicated subject by a more complicated approach, putting in more jargons to confuse the enquirer. As a facilitator in trade seminars, I try not to do so.
I am from www.tolee.com
[edited 5/22/01 4:01:50 PM]
[edited 11/17/01 3:00:17 AM]