A transportation contract agreement is a type of contract used by a company when it is hiring freight or transportation companies to transport some of its items, products or goods. The contract agreement outlines the specific details about the agreement and provides procedures for both parties in regard to changing the agreement or terminating it. A transportation agreement should always be used when one company hires another to transport valuable items.
The transportation contract agreement should start by outlining the company’s information that is hiring the transport company. Besides the obligatory contact information and contact person, some people prefer listing a reason why the transport company is being hired. This is for referencing once the annual budget or report is completed. The transport company should also be described, including the contact information and person for the transporting company.
Terms of the Contract
The terms of the transportation contract agreement are the set rules that both parties must follow as long as the contract agreement is legally active. If the company has hired the transporting company to transport three individual shipments nationwide on three separate occasions, these agreements must be written as terms of the contract. These are the conditions under which the company has hired this particular transporting company and not another. Any other individual agreements between the companies should also be mentioned under the terms.
Time Frame and Payments
The transportation projects that the company has hired the transporting company to complete are often given with preferred dates of shipment or transit. These dates or time frames should be included in the contract agreement so both companies know what is expected. The payments for the transportation should also be included, whether it is a monthly sum or a lump sum for each shipment.
Both companies need to have the option of breaking the contract if the terms are not upheld. A list of procedures should be in place so either company can opt out of the agreement at any given time. This can include paying a penalty fee or ensuring that the goods transferred are brought back to the original shipping site. This highly depends on the transportation agreement or scenario in place and on the flexibility and budgets of the two companies in the contract agreement.
Based in Toronto, Mary Jane has been writing for online magazines and databases since 2002. Her articles have appeared on the Simon & Schuster website and she received an editor's choice award in 2009. She holds a Master of Arts in psychology of language use from the University of Copenhagen in Denmark.