Freight Contracts Pt 2 of 3

Freight Contracts Pt 2 of 3

8/25/2014 Umut Türker 2068 Times Read

Again, I am not a lawyer, but I did take a (United States) university-level Business Contracts course and "consideration" was considered to be the most relevant issue. It is certainly something that you, as an importer, exporter, transporter or other party will be most interested in.

 

What is consideration? It is "the concept of legal value in connection with contracts. It is anything of value promised to another when making a contract". An illustrative example would be, "You will transport my goods and I will do X". Very often, "doing X" is paying money but not always. For example, if I want you to transport my goods in a certain way or by a certain time then my "doing X" may consist of ensuring that the goods are packed or arranged in a certain way, or ensuring that there is insurance on everything, or informing you of the weather conditions along the way, or something else. There can be different considerations for each issue in a contract. There are different considerations for the same issue in a contract. For example, "doing X" will be my consideration to you, and "transporting my goods" will be your consideration to me.


What is an actual freight contract? It would be a contract with the specifics of the goods and transportation involved. A very good explanation and sample can be found at contracts.onecle.com. It shows:

 

Agreement: what each party is expected to do

1. Definitions: the goods, properties, storage, transportation and other things involved.

2. Services to be provided by the transportation logistics company

3. Rates, charges and payments: including that of mileage and fuel surcharges, among other things

4. Obligations and rights of the goods provider

We make international freight easier

5. Performance requirements

6. Term and termination: the beginning of the contract and the end of the contract, and whether there is a right to terminate beforehand, and what will happen if one of the parties becomes bankrupt

7. Claims: especially regarding loss and damage, overcharges and undercharges, and invoices

8. Bill of lading

9. Insurance: whether one or both parties have adequate insurance, including workers compensation