
Adam Frankel
General Counsel · Technology & AI
15+ years as General Counsel to technology, cloud & AI companies
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This is a commercial haulage contract specifically tailored for heavy machinery and engineering equipment. It contains specific provisions for loading-point challans, cleaner staffing requirements, and detailed cargo dimensions including a 16 M.T. trailer capacity limit. It is not a simple freight booking form or a master services agreement for general logistics.
Use this when a manufacturer needs a dedicated carrier for road transport within India and requires a security deposit to cover potential cargo damage. Use a Bill of Lading or a standard Master Service Agreement if the relationship is for one-off shipments or general administrative services.
| Clause | Name | What it does |
|---|---|---|
| 1 | Period of Validity | The agreement remains valid for exactly one year unless the parties mutually agree to extend it. |
| 2 | Security Deposit | The Contractor must provide an interest-free security deposit in a specified Rupee amount to guarantee performance. |
| 3 | Replenishment of Security Deposit | If the Employer forfeits any portion of the deposit for losses, the Contractor must immediately restore the balance. |
| 6 | Staying or Demurrage Charges | The Employer is exempt from demurrage charges if the Contractor fails to present priced consignment notes within ten days. |
| 8 | Supply of Vehicles | The Contractor must supply vehicles daily, including holidays, with at least one cleaner assigned to each truck or trailer. |
| 15 | Transit Liability | The Contractor bears full liability for safe custody and damage except for accidents, which must be reported within a specified hour limit. |
| 16 | Termination and Suspension | The agreement may be cancelled if controversies regarding non-delivery are not resolved within four weeks of intimation. |
| 20 | Revocation and Modification | The Employer reserves the right to revoke the contract at any time without providing any reason. |
| 21 | Payment Terms | The Contractor must submit bills in triplicate for payment within a specified number of days after verification. |
| 25 | Staying Charges | The Contractor receives a fixed daily rate if a vehicle is held for loading or unloading beyond six working hours. |
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A contract for the carriage of goods by road, under which a manufacturer (the Employer) engages a transport contractor to carry its goods using the contractor's trucks, lorries and trailers, in India, for a one-year term. It covers the interest-free security deposit and its forfeiture and refund, the contractor's obligation to supply vehicles daily with qualified drivers and cleaners, documentation (consignment notes and challans), tarpaulin covering and safe custody, liability for loss or damage in transit and accident reporting, indemnities for statutory and third-party liabilities, charges (including detention/"staying" charges and weight-based pro-rata rates), the employer's right to appoint multiple contractors and vary terms, restrictions on subletting, and jurisdiction.