Currently, the demand for buying and selling property of individuals and legal entities is increasing, leading to increasing demand for property transportation. To ensure the rights and interests of the carrier and the customer, it is crucial for both parties must be cautious and accurate in each provision of the contract. Typically, the contract for the transport of property shall include content such as information about the parties, a detailed description of the property being transported, time and method of transportation, etc. In this article, TNTP will analyze the contents that parties should pay attention to when drafting the contract for the transport of property.
1. The parties enter into the contract
The parties should state information regarding the carrier and the customer in the contract. Individuals shall specify information such as name, identification number, contact address, phone number, email, etc. Legal entities shall provide their name, head office address, tax code number, the person signing the contract (legal representative under the law or authorized representative), etc. When having the demand for transporting property, especially property of great value, the customer needs to find a reputable transportation company with verified information to avoid fraud. When signing the contract, the parties should pay attention to the signing authority of each party to avoid situations where the person signing the contract does not have the authority to do so.
2. Subject matter of transportation
The subject matter of transportation can include machinery, equipment, raw materials, fuel, consumer goods, and other properties, including live animals, containers, etc. Before entering into the contract, the carrier must verify the legal status of the transported property, specifically determining whether those are prohibited or restricted from transportation, whether they are considered dangerous goods, or if there are any specific requirements for transporting such property. Determining the legal status of the transported property is a mandatory task for the carrier because failure to comply with transportation regulations can result in civil liability, compensation for damages, administrative penalties, or even criminal liability.
After determining the legality of the transported property and the conditions to be complied with during their transportation, the parties need to specify the details of the property, such as quantity, type, model, appearance, specifications, value, etc. For example, for the property that is the television, the parties need to agree on its value, brand, type, screen size, screen type, year of manufacture, condition, etc., to avoid vague agreements such as transporting a television without specifying relevant information. A detailed agreement on the subject matter of transportation is a crucial factor in resolving contract disputes, such as cases of property substitution, loss, damage, or missing items during delivery.
At this provision, the parties shall agree on the packaging of the property, especially for the property of great value and fragile items.
3. Time of delivery and receipt of property
The parties need to agree in the contract on the beginning and end time of the transportation of property, the moment when the customer delivers the property to the carrier, and the time when the carrier delivers the property to the receiving party.
Specifying the above content in the contract will determine the corresponding obligations of each party. Accordingly, the parties should agree on some of the following contents in the contract, such as the obligation of the customer to deliver the property to the carrier on time as agreed. In case the customer fails to deliver the property on time, they must bear the waiting costs and transportation fees to the agreed location for the carrier. Similarly, if the carrier delays receiving the property at the agreed location, they must bear the additional costs incurred due to the delay.
Meanwhile, the parties shall agree on the signing of the property delivery record. This record is considered evidence that the receiving party has fully and accurately received the property, and the carrier has fulfilled its responsibility to deliver the property.
4. Location of receiving property
Typically, the property delivery location is the address of the receiving party. However, in many cases, this location can be a warehouse or another place designated by the receiving party. Therefore, this location shall be agreed upon by the parties in the contract.
The parties need to agree on the course of action when the property is delivered to the designated delivery location on time but there is no recipient to receive the property. If the parties do not specifically agree on this matter, it will be governed by Clause 3, Article 538 of the Civil Code 2015 as follows: “Where the property has been delivered to the point of delivery on time but there is no recipient of the property, the carrier may deposit such property at a place of the designated third party to receive the property (the bailment) and must notify immediately the customer or the recipient of the property. The customer or recipient of the property must bear the reasonable expenses incurred about the storage of the property. The obligation to deliver the property is fulfilled when the property has been sent at a place of the bailment, and the customer or the bailment has been informed of the storage arrangement.”
5. Payment for the transportation fee
The transportation fee is an extremely important aspect of the contract. The transportation fee shall be as agreed by the parties. However, if the law provides regulations on the transportation fee rate, such fee rate shall be applied.
The parties shall agree on the content of the transportation fee, such as whether it includes the loading and unloading costs of the property onto the means of transport; whether the transportation fee is all-inclusive or if there are additional costs; whether the fee includes value-added tax, etc.
Along with the transportation fee, the parties shall agree on the payment method in the contract. The parties can choose to pay in instalments or make full payments. Meanwhile, the parties shall agree on the payment terms. The parties can refer to the following provisions regarding payment terms as follow: full payment of transportation fee immediately after the parties enter into the contract or immediately after the property recipient receives the property or immediately after the carrier receives the property for transportation; payment in instalments corresponding to each stage such as contract signing, the carrier receiving the property for transportation, the property recipient receiving the property, etc.
The above is the content of the article “Instructions for drafting fundamental terms in a contract for the transport of property” sent to readers by TNTP. If you have any issues requiring assistance, please do not hesitate to contact TNTP for the best support.