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Answer (C) is correct . A problem in an international sale is whether the seller will be paid. The problem is solved by using a letter of credit and a bill of lading. A bill of lading is a document of title evidencing receipt of goods by the carrier for shipment. A bill of lading is not an agreement with a bank to pay drafts or other demands for its customer. Such an agreement is a letter of credit (UCC 5-103). A seller is paid when (s)he presents the bill of lading to the buyer’s bank.

Answer (A) is incorrect because It is a true statement about a bill of lading.
Answer (B) is incorrect because It is a true statement about a bill of lading.
Answer (D) is incorrect because It is a true statement about a bill of lading.