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Need a Contract/Shipping Agreement
Question: Does any one out there have access to a sample contract agreement or maybe a link to one? I am an O/O that is thinking about going with my own running rights and need to find a sample contract to work with to provide to a company that I am thinking about shipping their freight for. If it means anything this is for a Canadian company. Thanks Answer: Why do you need this contract?? Contracts aren't worth the paper they're written on in today's world. If your finance co. wants the contract the wording will probably not appease them unless they provide the contract and then no shipper in their right mind would sign it. I have no contracts with any of my customers, just word of mouth and a hand shake>good enough for me and good enough for them. I'd price insurance if you haven't done that already as that seems to be a MAJOR issue these days, especially for start ups. car hard not cheap Answer: Contracts are a good idea, depending on who you are contracting with, and how the contract is written. Regardless, the only person fit to give you a contract is your attorney. Only he will be able to best assess your needs and fulfill the needs of your agreement with your shippers. Find a good TRANSPORTATION attorney. There are many who specialize in the caring business and they can best advise you. Good Luck. Mel Answer: At the very least you should have a legible Bill of Lading...by legible I mean that all signatures and the fine print are clearly legible. some people use poor photocopies or home grown documents, in my opinion that's false economy. The Bill of Lading provides many protections in lieu of a contract, like limiting your claims exposure to $2.00/lb, and prevents the customer from collecting a number of other charges. For example, if you are delayed in your delivery to a paper mill and the mill has to shut down due to lack of product, the mill cannot charge you for lost revenue (which could be in the millions of dollars). Without the protection of a legible Bill of Lading, you could be charged! In my opinion a shipping contract is a must in today's world. Maybe a handshake is okay among close friends, but in all other cases you should have something that will at the very least provide you with some legal recourse. Think about it: the legal experts are advising couples to get pre/post nup agreements, ie contracts that spell out who is responsible for what should the marriage terminate. And the divorce courts are full of people who once thought a written agreement isn't necessary. Surely, then, a written contract with your customer is a good idea. Your contract should, at a minimum, spell out your price, terms of payment, and conditions that limit your exposure to risk. Price. This is basic, especially when you've just negotiated rates that are a little higher than market. Don't cover this off and you leave yourself wide open to abuse. Example: You shake hands on $2800.00 US. Some weeks later the shipper tells you that he distinctly recalls the rate being $2600.00 Canadian. The nice man in the gray suit doesn't look so nice anymore does he? Now that you've hauled 20 loads, guess what the rate is going to be? Fuel surcharge? If you don't cover this off you may as well forget about collecting it. Terms. Your terms are 30 days from when? If you don't spell out exactly how and when you will be paid 30 days can very legitimately mean that you will not see your money for 60 to 90 days or more. Some shippers require an original copy of the POD before they even consider your invoice for payment. Other shippers who are mired in bureaucracy need the "yellow copy" even if the pink one has been sitting on their desk for the last eight weeks. 30 days from when...could mean from the next harvest moon if you don't clarify. Exposure. Your trailer is backed into a door at the shipper..A shipper's employee is Mario Andretti on a tow motor and does a job on the inside of your trailer. While you'll never get a customer to agree to asume all liability, at the very least you can get him to agree on a resolution procedure. Getting the customer to at least consider your claim is half the battle. No contract is bullet proof, but without one you have no chance as a plaintiff in court. Answer: Thank you Canuck, that was very well said! Mel Answer: I don't even go pee without consulting my attorney, get a contract signed and reading all fine print. A small carrier would be out of business really fast if you do not wish to follow the simple rules. A handshake? Sounds nice among friends, but not for any business transaction. It's like credit: Only God has credit with my company, all others pay cash ! TrTr. Driving a car is the oldest profession on earth: when God said "Let there be light", we already shipped the generators.... Answer: I think you covered it very well canuck, you need to cya. Copyright © 2007 - 2008 www.cartaste.com
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