Bills of Lading and Bankers Documentary Credits
THE DOCUMENTS AS SECURITY II: PROPERTY
The principles discussed in the last chapter protect the parties, including a bank as holder of a bill of lading, against misdescriptions of the goods, and loss or damage occurring while they are at sea. Contract is now also the main basis for the misdelivery actions and defences in chapter 7. They do not protect the holder against the bankruptcy of the buyer. However, long before the developments considered in the last chapter, it became accepted that control of the bill of lading could also control the passing of property in the goods, and property does protect against the bankruptcy of the other parties.