Foul Bill of Lading

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Foul Bill of Lading

A bill of lading that contains a notation indicating damage or shortage. Also called claused and is the opposite of clean bill of lading.

Claused Bill of Lading

A bill of lading indicating some damage to, or loss of, a good during transport. A bill of lading is a document in which the parties agree to ship a good to a certain location, and also serves as the receipt upon arrival at the destination. Most banks or other institutions financing the shipment refuse to accept or honor claused bills of lading, which means that sellers often have difficulty receiving payment on them. It is also called a dirty bill of lading. See also: Clean bill of lading.

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