Constructive Delivery

Constructive delivery is a type of delivery that is carried out without any change in the actual possession or custody of the goods. In this type of delivery, the transfer of ownership takes place through some other means, such as through the transfer of documents that represent the goods.

Examples of Constructive Delivery

Some examples of constructive delivery include:

1. Delivery of a Bill of Lading: A Bill of Lading is a document that represents the goods being transported. When the Bill of Lading is transferred from the seller to the buyer, ownership of the goods is transferred as well.

2. Delivery of Warehouse Receipts: When goods are stored in a warehouse, a Warehouse Receipt is issued to the owner of the goods. If the owner of the goods wants to transfer ownership to another person, they can do so by transferring the Warehouse Receipt.

3. Delivery of Shares: Shares in a company are not physical goods, but they represent ownership in the company. When shares are transferred from one person to another, ownership in the company is transferred as well.

Advantages of Constructive Delivery

Some advantages of constructive delivery include:

1. Convenience: Constructive delivery can be more convenient than physical delivery, as it allows for ownership to be transferred without the need for the goods to be physically transported.

2. Speed: Constructive delivery can be faster than physical delivery, as it allows for ownership to be transferred immediately, rather than having to wait for the goods to be transported.

3. Lower Costs: Constructive delivery can be cheaper than physical delivery, as it eliminates the need for transportation costs.

Conclusion

In conclusion, constructive delivery is a type of delivery that is carried out without any change in the actual possession or custody of the goods. It can be more convenient, faster, and cheaper than physical delivery, and is often used in situations where the goods cannot be easily transported.