Disputes often happen and note when signing transport contract

 09/09/2022

U&I Logistics – Before signing a transport contract, especially before deciding to sign any type of contract, you should also equip yourself with basic knowledge to understand the transport contract, transport and anticipate unnecessary legal consequences. Let's find out with U&I Logistics through this article!

Content

1. Note for signing a contract for the transport of goods

2. Some basic contents of a transport contract of goods

2.1 Object of transportation

2.2 Handing over the property to the carrier

2.3 Shipping fee, time and method of payment

2.4 Rights and obligations of the contractual parties

3. Some disputes and how to prevent disputes when concluding a transport contract

3.1 Disputes about the transport contract of goods involving the contractual parties

3.2 Disputes over the transport contract of goods due to the fact that the carrier of goods is not at the right time and place 

3.3 Disputes on the transport contract of goods due to loss of goods

1. Note for signing a contract for the transport of goods 
Transport contract disputes are often related to transport contracts, sometimes even leading to insurance policy disputes (such as contract disputes for the transport of goods by sea - the most common contract disputes) or even disable the transport contract. Disputes may arise from the content of the contract, interpretation of contract terms, contract performance, contract modification, supplementation, termination,... With each type of contract, many risks are prone to arising disputes.

To ensure the best benefits when hiring a transport, you should understand the following notes:

• A transport contract must be drafted and built based on the provisions of the law that comply with the laws of both the country of shipment and the country of delivery

• For international transport contracts, the language used to draft the contract must be English. In addition, each one will have an additional contract specifically written in the national language

• Depending on the signed contract, the carrier is responsible for delivering the goods to the agreed destination or the carrier can transport the goods in the manner desired by the customer

Read more: INCOTERM “ international trade terms” 

• After the transportation is finished, the consignee will receive remuneration from the lessee or in the forms mentioned in the signed transport contract

• To certify that the two parties have signed the transport contract, the contract and other relevant documents are considered as valid evidence before the law. 

• Therefore, it is necessary to carefully keep the shipping contract to protect your interests in the event of a problem with the shipping order.

2. Some basic contents of a transport contract of goods
Normally, a transport contract of goods usually has the following basic contents:
 

2.1 Object of transportation: 
This clause should clearly state the following characteristics of the goods to be transported such as the specific description of the goods, the packing specifications at the time of delivery. This is an important clause, which is the basis for determining the liability of the parties when a dispute occurs.
2.2 Handing over the property to the carrier: 
The parties involved in the contract need to clearly specify the time and place for the delivery and receipt of goods according to the provisions of Article 537 of the Civil Code 2005 of Viet Nam: “The transport hirer has obligations. deliver the property to the carrier on time, at the place and packed in accordance with the agreed specifications; must bear the costs of loading and unloading the property onto the means of transport, unless otherwise agreed.
2.3 Shipping fee, time and method of payment:

• Regarding freight: The freight rate shall be agreed upon by the parties, unless otherwise provided for by law. It should be noted whether the shipping cost includes shipping and handling costs and other related costs.

• About payment time: Payment time is specified, such as one-time or installment payment, date and time and according to specific progress. According to the provisions of Article 538 of the Civil Code 2005 of Viet Nam, the shipping hirer must fully pay the freight after the property is loaded onto the means of transport, unless otherwise agreed on

• Payment method: payment method in cash or via bank or other methods as agreed upon by the parties.

• About time and place: The specific date, time, and place of delivery need to be clearly stated in the transport contract.

2.4 Rights and obligations of the contractual parties:

• Rights and obligations of the delivery party

• Rights and obligations of the carrier

• Rights and obligations of the consignee

3. Some disputes and how to prevent disputes when concluding a transport contract
3.1 Disputes about the transport contract of goods involving the contractual parties
Disputes may happen because the incompetent the contractual parties is not is the legal representative, not authorized or the legal representative but does not have the authority to sign and in practice this happens a lot.
Depending on the specific case, the contract may be completely or partially void. At that time, it will seriously affect the interests of both the lessee and the transport unit.

How to prevent disputes due to the non-competent contract signer?
Before signing a contract, it is necessary to check in the business registration certificate or equivalent legal documents to see who is the legal representative, has the authority to sign the contract, or request the supply of goods and issue a written authorization to the employee when signing the contract to avoid future disputes.
3.2 Disputes over the transport contract of goods due to the fact that the carrier of goods is not at the right time and place 
Costs for the transport of the goods to the destination as agreed in the contract for the carrier.
In case the carrier is late or to the wrong place as agreed, it must bear all costs incurred.
How to prevent disputes caused by the carrier or the hirer to transport the work at the wrong time and place?
The above things need to be clearly stated together with the calculation of the incurred costs and compensation when the parties fail to comply with the terms stated in the contract to avoid disputes.

3.3 Disputes on the transport contract of goods due to loss of goods
Among such goods, there will be goods lost during transportation and storage. For example, a little loss of sand in the process of transporting sand is completely normal, there is not only loss but also expansion due to temperature and specific gravity (physical properties), so the Goods management in all stages: import, export, storage and transportation, people must take into account the problem of loss and the level of loss.

How to prevent disputes due to loss of goods during transportation?
If the loss on the total quantity of goods is greater than the amount specified in the contract, the carrier must compensate the shipping hirer at market value or make compensation as in the signed contract.

With more than 20 years of experience in providing logistics services, being a strategic partner of many domestic and foreign enterprises such as: Magnussen, Saigon Coop, Trancy Logistics, Maersk, Hillsdale Furniture, Liberty Furniture,... U&I Logistics is confident that we are one of the leading 3PL service providers in Vietnam.

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