Contract of Carriage

Logistics Term

Contract of Carriage Definition

A Contract of Carriage is the agreement between a carrier and the user. A carrier can be an air cargo or an ocean carrier, among others. At the same time, a user can be a consignee or a consignor. It carries the duties, rights, and liabilities of the parties involved in the contract. In addition, a contracted carrier can choose when and if to provide a service.

The most common types of contracts of carriage are charter parties, bills of lading, sea waybills, and air waybills. Within a contract of carriage, there are several clauses. First is the party's involved identification, which entails the person's name, home or office address, and contact data. Secondly is the description of work, the timeline, rights, obligations and liabilities, payment schedules, compensation, and "An Act of God".

Clauses of a Contract of Carriage

An Act of God permits the parties involved to avoid liabilities arising from a contract breach in circumstances beyond their control. However, it does not excuse the operations entirely but only accommodates delays.

Other clauses include insurance, dispute resolution, warranty, signature, and dateline. It's important to note that a contract of carriage has several advantages.

These are that the cost is arrived at beforehand and that drawing out the rights, obligations, and liabilities is always advisable before operations commence. Additionally, a contract of carriage creates room for clarity for the involved parties.

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