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HomeCommercial CodeDiv. 7Ch. 3§ 7304 Bill Of Lading Parts

§ 7304 Bill Of Lading Parts

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 7304 Bill Of Lading Parts

Key Takeaways

  • •A bill of lading (a paper showing who owns shipped goods) usually can't be split into multiple parts. If someone does this, they have to pay for any problems it causes.
  • •If a bill of lading is legally split into parts, all parts together count as one bill. Each part has a special code and only works if the goods haven't been given to someone else already.
  • •If different parts of the same bill are given to different people, the first person to get their part correctly is the real owner of the goods, even if someone else gets the goods later.
  • •If you give or sell just one part of a split bill, you're responsible for it as if it were the whole bill.

Example

A company ships 100 TVs and splits the bill of lading into two parts. They sell one part to Store A and the other to Store B.

Store A gets their part first and correctly, so they own the TVs. Even if Store B gets the TVs later by showing their part, Store A is still the real owner. The company that split the bill must fix any problems this causes.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 7304 Bill Of Lading Parts

(a) Except as customary in international transportation, a tangible bill of lading may not be issued in a set of parts. The issuer is liable for damages caused by violation of this subdivision. (b) If a tangible bill of lading is lawfully issued in a set of parts, each of which contains an identification code and is expressed to be valid only if the goods have not been delivered against any other part, the whole of the parts constitutes one bill. (c) If a tangible negotiable bill of lading is lawfully issued in a set of parts and different parts are negotiated to different persons, the title of the holder to which the first due negotiation is made prevails as to both the document of title and the goods even if any later holder may have received the goods from the carrier in good faith and discharged the carrier’s obligation by surrendering its part. (d) A person that negotiates or transfers a single part of a tangible bill of lading issued in a set is liable to holders of that part as if it were the whole set. (e) The bailee shall deliver in accordance with Chapter 4 (commencing with Section 7401) against the first presented part of a tangible bill of lading lawfully issued in a set. Delivery in this manner discharges the bailee’s obligation on the whole bill. (Repealed and added by Stats. 2006, Ch. 254, Sec. 49. Effective January 1, 2007.)

Last verified: January 23, 2026

Key Terms

tangible bill of ladingset of partsidentification code

Related Statutes

  • § 10304 Subsequent Leasehold Interest Transfer
  • § 10309 Fixture Filing Requirements
  • § 10301 Lease Contract Enforcement
  • § 10302 Lease Title And Possession
  • § 10303 Lease Transfer Restrictions

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 7304.
View Official Source