Question

Difficulty: Very hardCommercial Documents in Foreign Trade

A Mate's Receipt issued by a ship's chief officer upon receiving cargo on board serves as an interim acknowledgment of receipt, but unlike a clean Bill of Lading, it does not constitute a negotiable document of title that can be endorsed to transfer legal ownership of the goods.

Answer: Answer

Answer

True. A Mate's Receipt is an interim receipt acknowledging physical loading of cargo, whereas a clean Bill of Lading is a negotiable document of title capable of transferring ownership through endorsement.
The statement is correct because a Mate's Receipt is an interim document issued on board a vessel to acknowledge loading. It does not carry the legal authority of a document of title; that characteristic is reserved for the Bill of Lading, which allows the holder to transfer legal ownership of the shipment via endorsement.

Step-by-Step Solution

1
Examine the primary purpose and issuing authority of a Mate's Receipt.
A Mate's Receipt is signed by the chief mate/officer on board the vessel as an initial acknowledgment that cargo has been received.
It serves as temporary evidence of loading before formal freight documents are generated.
2
Determine the legal status of a Mate's Receipt regarding ownership transfer.
A Mate's Receipt is not a document of title. Holding or endorsing it does not grant legal ownership of the cargo.
The shipper must exchange the Mate's Receipt at the shipping line's office to secure the official Bill of Lading.
3
Contrast the legal characteristics of a Mate's Receipt with a clean Bill of Lading.
A clean Bill of Lading serves three functions: a receipt for goods, evidence of the contract of carriage, and a negotiable document of title.
Because only the Bill of Lading acts as a document of title enabling transfer of ownership via endorsement, the statement is accurate.

Key Concept

Distinction between interim shipping receipts and negotiable documents of title in foreign trade
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