There are several risks associated while transporting goods from one place to another. So, it is imperative to make sure everything goes well till the goods reach the destination. What could be done to ensure this?
Whether you are a transportation service provider or service receiver, use a transportation agreement to ensure the safety of the goods. So, the parties could create one before the job gets started.
What Is a Transportation Agreement?
A legal document made between two parties, the transportation company and the owner of the goods for transporting the goods from one place to another.
The agreement justifies the quantity and condition of the goods as well as the entity responsible for its safety.
The terms and conditions of the agreement shall be agreeable by both sides. So it is crucial to use a proper transportation agreement. This way both the party could build a trustworthy and professional relationship.
What Are the Benefits of Using a Transportation Agreement?
The companies need to ensure that they are hiring a reliable transportation company that will suit their logistic requirement and safety of your goods. Therefore, transportation agreements are used to not fall into false promises.
The parties shall carefully plan out the terms and conditions of the agreement which are mutually agreed upon. It shall describe the specific instructions as to how the drivers of the transportation services will operate, and the rules they need to follow.
Such steps will ensure that the drivers know what to do and how to manage any uncertain situation. The agreement benefits not only who is hiring but also who is providing the service. The transport company can keep their mind in peace and receive timely payment.
Also, the agreement clearly describes the quantity and condition of the goods which is written proof for the transport company in case of any dispute.
What Are the Features of a Transportation Agreement?
Here are a few features included in the transportation agreement:
Point of Agreement
It is imperative to state a valid point of contact from both the parties. It includes names, addresses, phone numbers, and more.
Payment
The amount and the last date of the advance payment and the due payment is stated here to ensure the payment to the transport company.
General Provisions
In case of any loss during the transportation journey, from the point of loading to the final destination will be the responsibility of the transport company.
However, in the event of theft, the case will be immediately investigated by the local law. Until the case is closed, the transport company will not be held responsible for such a loss.
Penalty Clause
This section shall include the penalties the party needs to bear in case they fail to fulfill their duties. In case the delivery is delayed due to the misconduct of the service provider, they shall be granted 48 hours to complete the task.
Failing to do so will lead to predetermined penalty charges and the goods company has the right to hire another transport company.
Termination
In the transporter agreement, the client has the right to terminate the agreement at any given point with written notification. Then, the client shall pay as per the service provided until the termination date.
However, if the misconduct happens from the transporter's side, no written notification is required.
Force Majeure
In the instance of force majeure, the delays keep happening and one or both the parties are unable to perform their obligations as per the agreement.
This will lead to the termination of the agreement without anyone party held responsible. The client then needs to pay at the rate per ton per kilometer, till the interruption in the transport.
Acceptance
Both the parties provide their respective electronic signatures stating their agreement of all the above-mentioned terms and hereby enter into the agreement.
Conclusion
The agreement needs to be duly signed by both the parties to acknowledge that they have read and agree to its terms and conditions. In case of any dispute or misunderstanding, the transport services agreement will work as legal evidence.
The transport company could create their agreement for free at CocoSign. Here, one can find a wide range of transportation and other agreements that are constantly updated as per the current laws.