Trucking Contract Template

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Trucking Contract

This Trucking Contract (hereinafter referred to as the "Contract") is entered into on   (the "Effective Date") by and between

 , an individual registered at   (hereinafter referred to as the "Client"), and

 , an individual, registered at   (hereinafter referred to as the "Carrier"), collectively referred to as the "Parties" and individually as the "Party"

WHEREAS Client desires to retain the transportation services of the competent Carrier;

WHEREAS the Carrier is engaged in the business of goods and assets transporting (the "Freight") by motor vehicle under its authority as a contract Carrier;

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and promises herein contained, and other good and valuable consideration, the Parties do hereby agree as follows:

Subject of the Contract

The Carrier agrees to furnish the transportation services (the "Services") of the Freight requested by the Client in accordance with the provisions of this Contract. The Carrier shall provide the following Services:

  • Small haul, or less-than-truckload freight shipping (LTL).

The Services shall be performed at the locations designated by the Client.

For the purpose of this Contract, the Freight refers to cargo transported according to the terms and conditions herein, including all pieces accepted on a bill of lading.

The Services will be rendered according to the following schedule:

Start date:  .

Mileage:   miles.

Date of delivery:  .

Other conditions:  .

Payment terms and procedure

The charges and payment terms for the Services performed hereunder shall be as follows: 

Price per mile:  .

The payments should be made daily.

The Client shall pay the Carrier for the provided Services by cash

Term and termination

This Contract shall enter into full force on the Effective Date.

This Contract shall remain in full force and effect until   (the "End Date").

The Contract shall expire automatically at the End Date.

Either Party has the right to terminate this Contract unilaterally, with or without cause, upon   days prior written notice to the other Party. 

This Contract shall automatically renew for successive   unless either Party terminates this Contract by providing the other Party with a   written notice of non-renewal before the current term expires. 

Shipments under the Contract 

Every shipment tendered to the Carrier by the Client on or after the date of this Contract shall be subject only to the terms of this Contract and to the provisions of law applicable to trucking Services, regardless of whether the Carrier is allowed to operate or does operate as a common carrier. 

Bills of lading

Upon delivery of each shipment, the Carrier shall prepare and/or obtain a receipt in a form acceptable to the Client, identifying the Freight delivered, the condition of such Freight, the location and party receiving the Freight, and the date and time of delivery. If the Client elects to use a bill of lading for this purpose, any terms of the bill of lading, including but not limited to payment and credit terms, released rates, or released value inconsistent with the terms of this Contract shall be ineffective. Failure to issue a bill of lading or sign a bill of lading acknowledging receipt of the cargo by the Carrier shall not affect the liability of the Carrier. 

Freight loss or damage 

The Carrier shall have the sole and exclusive care, custody, and control of the Client's property from when it is delivered to the Carrier for transportation until delivery to the destination.

The Carrier assumes liability for loss, delay, and/or damage to the Client’s property while under the Carrier’s care.

In case of loss, delay, and/or damage to the Freight, the Client shall submit a written notice of a Freight claim to the Carrier within   days of the occurrence. Any claims submitted after the mentioned notice period shall be barred.

The payments by the Carrier to the Client or the Client's customer related to the provisions of this section shall be made within   days following receipt by the Carrier of the Client's invoice and supporting documentation for the claim.

The Carrier shall be liable for the full invoice value of the cargo but shall not be liable for any related costs or fees, including economic loss or consequential or incidental damages. 

The provisions of this Section shall survive the termination or expiration of this Contract. 

Relationship between the Parties 

The Parties to this Contract are independent contractors. Nothing in this Contract during its performance shall be interpreted to create an employment, agency, joint venture, or partnership relationship between the Client and the Carrier. 

The Carrier agrees to be an independent contractor solely responsible for performing the Services and an employing unit subject to and in compliance with all applicable tax, unemployment compensation, worker's compensation, and other laws, including all recordkeeping, wage payment, payroll withholding, and all other requirements for full compliance.  

Confidentiality

Each Party acknowledges that this Contract, including the Annexes, and any information emanating from the other's business is considered proprietary and confidential. During or after the term of this Contract, each Party agrees not to permit the duplication, use, or disclosure of such information except as may be required by law. Each Party shall be responsible for any unauthorized disclosure by its employees, servants, or agents and shall take reasonable precautions to prevent such disclosures.

Injuries 

The Carrier represents and warrants that:

  • The Carrier has the full right, power, and authority to enter into this Contract, grant the rights, and perform the obligations hereunder;
  • The Carrier has obtained all necessary licenses, permits, approvals, and insurance required to perform the obligations under this Contract;
  • The Carrier has properly secured and covered all the Freight being transported from any weather, road, or other hazardous conditions during the term of the Contract, including but not limited to All-Risk Cargo Insurance with a per-unit liability limit sufficient to cover the Freight having a minimum value of   and a maximum value of up to  .
Default

The occurrence of any of the following events shall constitute a default hereunder (the Default"): 

  • The Client's failure to make a required payment within agreed-upon terms;
  • The Carrier's failure to deliver Services in the time and manner provided for in the Contract;
  • The insolvency or bankruptcy of either Party;
  • Any other material breach of the Contract by either Party.
Remedies

In the event of the Default by the Client, the Carrier shall have the right to provide the Client with an appropriate written notice (the "Default Notice") with a demand to cure the Default within   days. If the Client fails to meet the Carrier's requirements stated in the Default notice within a specified period, the Carrier shall be entitled to take any actions to protect the Carrier's interests. Specifically, the Carrier has the right to take protective and preventive measures, including but not limited to declaring all amounts under the Contract immediately due and payable and terminating the Contract unilaterally without prior notice specified in the Default Notice.

In the event of the Default by the Carrier, the Client has the right to provide the Carrier with an appropriate written notice (the "Default Notice") with a demand to cure the Default within   days. If the Carrier fails to meet the Client's requirements stated in the Default Notice within a specified term, the Client shall be entitled to take any actions to protect the Client's interests. Specifically, the Client has the right to take protective and preventive measures, including but not limited to terminating the Contract unilaterally without prior notice as of the term specified in the Default Notice, provided that the Client has paid the Carrier for the amounts that have accrued under the Contract to the date of such termination.

The remedies provided in this Contract shall not be exclusive but shall be cumulative and shall be in addition to all other remedies in favor of the Client or the Carrier at law or in equity.

Governing law and dispute resolution 

This Contract will be governed by and construed under the laws of the State of  , except for its conflict of laws principles. 

The Parties agree on exclusive jurisdiction in the court of the State of  .

Force majeure

The Party affected by force majeure shall not be deemed to be in breach of this Contract or otherwise be liable to the other because of any delay in performance, or the non-performance, of any of the obligations under this Contract to the extent that the delay or non-performance is due to any force majeure of which one Party has notified the other Party as agreed hereinafter. The time for the performance of that obligation shall be extended accordingly. If any force majeure occurs in relation to either Party that affects or is likely to affect the performance of any of the obligations under this Contract, the Party shall notify the other Party within a reasonable time as to the nature and extent of the circumstances in question and their effect on the Party's ability to perform. 

"Force majeure" means earthquake, flood, storm, other acts of God, war, emergency, accident, industrial strike, acts of Government, or other impediments that the affected Party proves were beyond its control and that it could not reasonably be expected to have taken the impediment into account at the time of the conclusion of this contract or to have avoided or overcome it or its consequences. 

Notices 

All notices to the Parties required under the Contract shall be given to the addresses set forth below:

If to the Client:
Attn.  ,  
.
If to the Carrier:
Attn.  ,  
.
Miscellaneous 

Severability. If and to the extent any provision of this Contract is held illegal, invalid, or unenforceable in whole or in part under applicable law, such provision or such portion thereof will be ineffective as to the jurisdiction in which it is illegal, invalid, or unenforceable to the extent of its illegality, invalidity, or unenforceability. The illegality, invalidity, or unenforceability of such a provision in that jurisdiction will not affect the legality, validity, or enforceability of such a provision or any other provision of this Contract in any other jurisdiction. 

Entire agreement. This Contract is the complete and exclusive agreement between the Parties with respect to the subject matter hereof, superseding any prior agreements and communications, both written and oral, regarding such subject matter.

Amendments. This Contract may only be modified, or any rights under it waived, by a written document executed by both parties. 

Binding effect. This Contract shall be binding for the Parties and their respective permitted successors and assigns.  

IN WITNESS WHEREOF, the Parties have signed this Contract.

Details and signatures of the Parties

 

The Client

Full name:  

Address:  

Signature: _________________

Banking details:  

The Carrier

Full name:  

Address:  

Signature: _________________

Banking details:  

Written by Megan Thompson - Reviewed by Kate Adkham

What Is a Trucking Contract?

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A trucking contract is a legally binding agreement between a client (such as a shipper or freight broker) and a carrier (independent truck driver or trucking company) that outlines the terms and conditions for transporting goods. This contract guarantees clarity on responsibilities, payment terms, and other critical details, minimizing potential disputes.

Utilizing a trucking contract template can streamline the process, provided all necessary elements are included and tailored to specific needs.

When Should I Use a Trucking Contract?

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You should use trucking contracts when:

  • Hirie an independent truck driver or a trucking company to transport goods.

  • Establish terms for ongoing freight services or a specific shipment.

  • Define responsibilities, payment terms, and liability clauses.

  • Ensure compliance with federal and state transportation regulations.

Having a detailed trucking contract in place provides legal protection and sets clear expectations for all parties involved.

What Should I Include in a Trucking Contract?

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A comprehensive trucking contract should include:

  • Parties Involved: Full names and contact information of the client and carrier.

  • Scope of Work: Detailed description of services, including pickup and delivery locations, cargo type, and delivery timelines.

  • Payment Terms: Agreed-upon rates, payment schedule, and invoicing procedures.

  • Equipment and Maintenance: Specifications of vehicles used and maintenance responsibilities.

  • Insurance and Liability: Insurance requirements and liability clauses for cargo loss or damage.

  • Compliance with Laws: Assurance that all services comply with applicable federal and state regulations.

  • Termination Clause: Conditions under which the contract can be terminated by either party.

  • Dispute Resolution: Mechanisms for resolving any disagreements, such as mediation or arbitration.

Including these elements provides that the trucking contract is clear, enforceable, and tailored to the specific transportation arrangement.

How Do I Draft a Trucking Contract?

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To draft an effective trucking contract:

  1. Use a Template: Start with a trucking contract template to ensure all standard provisions are included.

  2. Customize the Details: Tailor the template to reflect the specific transaction, including accurate descriptions and terms.

  3. Consult Legal Requirements: Review federal and state laws to ensure compliance with any specific requirements.

  4. Review and Sign: Both parties should thoroughly review the document, sign it, and, if necessary, have it notarized.

  5. Distribute Copies: Provide signed copies to both the client and the carrier for their records.

A professional trucking contract template simplifies the drafting process and ensures that all critical aspects of the transportation agreement are properly documented.

Optional Clauses To Strengthen Trucking Contract

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To enhance the effectiveness of your trucking contract, consider adding the following optional clauses:

  • Force Majeure: Addresses unforeseen events (e.g., natural disasters, strikes) that may prevent the fulfillment of a contract.

  • Non-Compete Clause: Prevents the carrier from engaging with direct competitors during the term of the contract.

  • Confidentiality Agreement: Protects sensitive information shared between parties.

  • Performance Metrics: Sets standards for delivery times, safety records, and service quality.

  • Subcontracting Terms: Specifies whether the carrier can subcontract services and under what conditions.

Incorporating these clauses provides additional clarity and protection for both parties involved.

Because federal law governs the U.S. transportation industry, state laws incorporate and defer to those federal laws:

  • US Code of Federal Regulations, Title 49 “Transportation” 
  • Transportation Conformity Regulations –– This document reflects all transportation conformity rulemakings promulgated by EPA as of April 13, 2012, including the Restructuring Amendments final rule and the MOVES Regional Grace Period Extension final rule.
  • Clean Air Act, Conformity Section –– This link includes Clean Air Act Section 176(c) as amended by the 2005 transportation act known as “SAFETEA-LU".