Define: Contract Of Carriage

A contract of carriage is a legally binding agreement between a transportation service provider (such as an airline, shipping company, or bus operator) and a passenger or shipper. It outlines the terms and conditions of transportation, including the rights and responsibilities of both parties.

The key elements of a contract of carriage include the identification of the parties involved, the description of the goods or passengers being transported, the agreed-upon transportation route, the payment terms, liability provisions, and any additional terms and conditions.

A contract of carriage can be either oral or in writing, depending on the circumstances and the applicable laws. However, it is generally recommended to have a written contract to avoid any misunderstandings or disputes.

If a transportation service provider breaches the contract of carriage, the affected party may be entitled to various remedies, such as compensation for any damages suffered, reimbursement of expenses, or even cancellation of the contract.

In general, a transportation service provider cannot unilaterally change the terms of the contract of carriage without providing reasonable notice to the other party. However, specific laws and regulations may vary depending on the jurisdiction and the mode of transportation.

Many contracts of carriage include limitations of liability clauses, which restrict the amount of compensation that can be claimed by the passenger or shipper in case of loss, damage, or delay. These limitations are often based on international conventions or national laws.

In some cases, a contract of carriage can be transferred or assigned to another party with the consent of all parties involved. However, such transfers or assignments may be subject to certain conditions and restrictions, depending on the applicable laws and the terms of the contract.

If a passenger or shipper cancels the contract of carriage, they may be subject to cancellation fees or penalties as specified in the contract. The transportation service provider may also have the right to retain a portion of the payment made by the passenger or shipper.

To be valid, a contract of carriage must generally meet certain legal requirements, such as the presence of an offer and acceptance, consideration (payment or exchange of value), capacity of the parties to enter into a contract, and lawful purpose. Additionally, specific laws and regulations may impose additional requirements depending on the mode of transportation and the jurisdiction.