AGREEMENT FOR CARRIAGE OF GOODS

OLOpen Legal LibraryUpdated 7 Jul 2026

AGREEMENT FOR CARRIAGE OF GOODS

This covenant is made this ______ day of ____________, 20____, between ____________________, a company registered under the Companies Act, 1956, with its registered office at ____________________ (hereinafter called the "Employer") of the one part; AND M/s ____________________, a company registered under the Companies Act, 1956, doing transport business, inter alia, at ____________________ (hereinafter called the "Contractor") of the Other Part.

Whereas the Employer manufactures and does business in structural engineering and mechanical equipment of various kinds and sizes;

And whereas the Contractor, being a general carrier owning various trucks, lorries and trailers for transporting heavy materials by road from one place to another, with an all-India permit and/or Road Licence and spare capacity, has asked the Employer for transporting its goods at competitive rates, to which the Employer has consented.

Now these presents witness, and the parties agree as follows:

1. This agreement will be valid for one year, starting from ____________ to ____________, after which date the covenant will itself stand determined by passage of time, unless extended further by mutual agreement.

2. The Contractor shall deposit with the Employer an amount of Rs. ______ as an interest-free security deposit, which amount shall be retained by the Employer as security for duly performing this agreement on behalf of the Contractor. On any contravention of any terms of this agreement, the Security Deposit shall become liable to be forfeited. The Security Deposit shall, if not forfeited, be available for meeting any damage, loss or avoidable expenditure caused to the Employer by any act of the Contractor.

3. The Employer may notify the Contractor of the forfeiture of the Security Deposit, either in full or in part, as indemnification for any loss or damage suffered by the Employer. On receipt of such notice from the Employer, the Contractor shall replenish the Security Deposit, which shall always be available to the Employer during performance of the contract.

4. The Employer shall be free to sue for or recover the amount of damages and losses, with all costs and expenses, which the Employer may have suffered, incurred or been put to as a result of the Contractor failing in due performance thereof. The Employer shall also be free to reserve, set off and appropriate any and every sum which may, at any time, fall due and owing to the Employer by the Contractor, against the earnest money or any money paid or due to the Contractor.

5. The amount of the Security Deposit will be refunded to the Contractor, without interest, on the ending of the agreement, after accommodating the dues of the Employer, if any, against the Contractor. If the agreement is renewed or extended by mutual agreement, the amount will not be refunded but retained as the Security Deposit against the renewed or extended agreement.

6. The Contractor shall present one copy of the priced Consignment Note/Invoice to the Consignee of the goods within "TEN" days from the date of loading of the Truck/Trailer, at destination, for the use of the applicable Sales Tax Permit and Octroi Exemption Certificate. On failing to comply with the above, the Employer or the Consignee will not be liable for payment of any staying or demurrage or any other charges spent on this account. The Contractor shall not pay any Octroi/Municipal Taxes on any account for the carriage of any materials for and on behalf of the Employer without his express permission. If any amount is paid without the Employer's permission, the Contractor alone will be liable.

7. The kind of work to be performed by the Contractor, and the charges to be paid to him for the services to be rendered, shall generally be according to the schedule given hereunder.

8. The Contractor guarantees to supply the vehicles required daily, including on holidays. The Trucks will be placed at such point as instructed by the Employer from time to time. All the Trucks/Trailers shall be fit and proper for driving, and shall be driven by experienced drivers properly qualified, and shall be accompanied by at least one Cleaner, who will help and assist in the loading and unloading of the said Truck/Trailer and stacking if necessary. All expenditure spent for running the said Trucks/Trailers, and the salary and wages of the drivers and cleaners, shall be borne and paid for by the Contractor.

9. The Employer will intimate to the Contractor, over the phone or otherwise, the lifting programme of goods for the following day. The Contractor will place, on the specified date and time, the number of Trucks/Trailers required. If the Contractor does not supply the number of Trucks/Trailers required, the Employer will arrange the number of Trucks/Trailers not supplied, and any loss to the Employer on this account will be debited to the Contractor's account and recovered from the Contractor.

10. After loading at the starting point is completed, the Contractor will be required to sign the office copy of the challan for the Materials/Packages loaded on the lorry in good condition and order and of the weight stated in the Challan. The Contractor shall also be delivered three copies of the said Challan. After handing over the Stores/Materials/Packages at the destination, the Contractor shall retain two copies of the Challan signed by the Consignee and get the Rubber Stamp of the Consignee affixed thereon, and shall deliver one copy of the Challan to the Consignee. The Contractor shall present one of such signed copies to the Employer at once, and the second copy shall be attached to the Bill of the Contractor to be presented.

11. The Contractor shall cover the Stores/Materials/Items/Packages carried by it, as stated above, with Tarpaulin, and shall properly secure the same to avoid damage or loss en route.

12. If any Road Permit or other permit from Civil, Police or other authorities is necessary for transporting the consignment, the Contractor will be duty-bound to arrange and obtain the same from the concerned authorities. The Employer, however, consents to give the necessary help by issuing letters, recommendations, etc. in favour of the Contractor.

13. The Contractor's Trucks/Trailers should reach the destination within a reasonable time. The Contractor's agents attending the Employer or the loading station should have Identity Cards with them, and should assist the Employer's officials in inspecting the Road Permit, Licence, etc. when needed.

14. The Contractor shall be liable for making good any loss or damage caused to the Employer due to negligence or lack of proper care/caution on the part of any employees or men of the Contractor, or employees in the Truck/Trailer. The driver of a Truck/Trailer, if hired by the Contractor from the market, will also be considered as the Contractor's man, as far as this clause is concerned.

15. The Contractor shall be liable for the protection/safe custody of the Employer's stores, stocks and goods entrusted to it, till such stock is handed over at the destination, and shall also be liable for any loss or damage to the Employer's stock while in transit, excepting accidental cases. On the occurrence of an accident before the stock is delivered — causing or likely to cause damage to the stocks transported, or considered in any way detrimental to the Employer's interest — the Contractor shall be wholly liable for reporting the accident to the nearest Police Station and/or the nearest Office of the Employer within ______ hours of the actual happening.

16. Controversies relating to non-delivery/short delivery, and any other controversies concerning despatch of a consignment from the Employer's premises and notified to the Carrier by the Employer, shall be decided within four weeks from the date of intimation to the Contractor, failing which the agreement shall be suspended/cancelled, without prejudice to any liabilities that the Contractor is subject to under the terms/conditions of the agreement.

17. The Contractor shall take all liabilities and keep the Employer wholly indemnified against any cost, action, suits, claims, charges, damages and expenditure emerging out of the work covered by this agreement.

18. The Contractor shall be fully liable for complying with all Acts, Regulations, etc. concerning its workmen or vehicles, and shall fully indemnify the Employer against any liability or action by the Contractor's workmen and others. The Contractor shall reimburse the Employer, either from the "Security Deposit" or from pending Bills with the Employer to be paid.

19. The Employer does not guarantee to the Contractor the number of vehicles needed per day or month, nor does the Employer guarantee the type or quantities of stores or materials that will be supplied to the Contractor for transportation.

20. The Employer retains the right to appoint more than one contractor for the same services. The Employer also retains the right to amend/revise or modify the terms/conditions of the Contract, or any portion hereof, or to revoke it at any time during the duration of the Contract, without giving any reason whatsoever.

21. The Contractor will submit its bills in triplicate, along with receipted challans, on completing such transactions or services done by him, to the Employer for making payment on verification, within ______ days from the date of submission of the bills, provided the bills are in order in all respects.

22. The Contractor shall, at the beginning point or site of work, keep and place at such site or point a duly authorised agent empowered to act on its behalf, who will receive directions from the Employer or its officers concerning the carriage of the Stores/Materials/Packages. However, the whole responsibility for the transport/safe delivery of the Stores/Items/Materials/Packages shall be of the Contractor, who shall be fully liable for giving proper and adequate instructions to the Drivers, Cleaners and other staff, and for providing the spare parts, fuel and other accessories that may be needed for doing the work entrusted to it under this covenant. The Contractor/his authorised agent shall attend the office of the Employer whenever needed.

23. The Contractor shall not transfer or sublet the Contract, or any portion thereof, in any way whatsoever, without the prior express permission of the Employer.

24. Without prejudice to any other enactment, the Contractor shall keep the Employer fully indemnified against any action, claim or proceeding under any Act, regulations, Rules, notifications, bye-laws, order or direction enforceable at law, for anything committed or done by the Contractor in breach of such enactment, or for the contravention or violation by it, during execution or completion of the work under the Contract. If, due to such action, proceeding or claim, the Employer is held responsible for any penalty or for paying any compensation, such liability shall be considered to be the liability of the Contractor, and the Contractor shall be wholly liable for all such penalties.

25. The Contractor shall be paid Rs. ______ per day per vehicle as "staying charges" if a vehicle is held up, either for loading or unloading, for more than six working hours; and an amount of Rs. ______ will be paid if the vehicle required is not used but returned empty.

26. Each truck shall carry up to ______, and a trailer ______, and pro-rata rates will be paid for materials carried in excess of these weights. Items weighing ______, as carried per the standard size of the truck, will be deemed as normal load. Other items in excess of height/width/length/weight will be deemed as over-dimensional and will be dealt with separately. Any item which can be transported by a trailer with a maximum height and width of 7'-0" and a weight of 16 M.T., with length up to ______'-0", will be deemed as a normal trailer load. Other items exceeding in weight/length/width/height will be deemed as over-dimensional items and will be dealt with separately.

27. All controversies shall be subject to the jurisdiction of ____________.

THE SCHEDULE
____________________

IN WITNESS WHEREOF the parties herein have executed these presents on the day, month and year below written, at the Employer's office in ____________.

Employer: ________________________

Contractor: ________________________

DATE: ____________
PLACE: ____________

WITNESSES:
1. ________________________
2. ________________________

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Document info
GitLaw document. Document created on Fri Jun 26th, 2026. Last updated on Tue Jul 7th, 2026.
This document is public
Licensed under CC BY 4.0 (Attribution).
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