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Freight Agent Contract for the United Kingdom

Freight Agent Contract Template for England and Wales

A Freight Agent Contract is a legally binding agreement under English and Welsh law that establishes the terms and conditions between a principal company and a freight agent for the provision of freight forwarding services. The contract defines the agent's authority to arrange transportation, handling, and documentation of goods on behalf of the principal, including commission structures, operational procedures, and compliance requirements.

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Freight Agent Contract

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What is a Freight Agent Contract?

The Freight Agent Contract is essential for businesses requiring professional freight forwarding services in England and Wales. This document outlines the relationship between the principal and the freight agent, establishing clear parameters for service delivery, compensation, and liability. It's particularly crucial for international trade and logistics operations, ensuring compliance with relevant transportation laws and regulations. The contract typically includes detailed provisions for operational procedures, territory restrictions, performance standards, and commission structures.

What sections should be included in a Freight Agent Contract?

1. Parties: Identification and details of the principal and freight agent

2. Background: Context of the agreement and business relationship

3. Definitions: Key terms used throughout the agreement including relevant legislation references

4. Appointment and Scope: Terms of agent appointment and detailed scope of services

5. Agent's Obligations: Core responsibilities and duties of the freight agent including compliance requirements

6. Principal's Obligations: Responsibilities of the principal including information provision and payment obligations

7. Compensation: Commission structure, payment terms, and expenses

8. Term and Termination: Duration of agreement and termination provisions including notice periods

9. Liability and Indemnification: Scope of liability, limitations, and indemnification obligations

10. Confidentiality: Protection of confidential information and trade secrets

11. General Provisions: Standard boilerplate clauses including governing law and jurisdiction

What sections are optional to include in a Freight Agent Contract?

1. Territory Restrictions: Geographic limitations of agent's authority and service area

2. Performance Targets: Specific KPIs, performance metrics, and reporting requirements

3. Insurance Requirements: Detailed insurance obligations and minimum coverage requirements

4. Data Protection: Specific obligations regarding data handling and GDPR compliance

5. Non-Compete: Restrictions on agent's ability to compete or represent competing principals

What schedules should be included in a Freight Agent Contract?

1. Commission Schedule: Detailed breakdown of commission calculations, rates, and payment terms

2. Service Level Agreement: Detailed performance standards, metrics, and service requirements

3. Territory Schedule: Detailed description of geographical coverage and any excluded territories

4. Operating Procedures: Standard operating procedures, workflows, and reporting requirements

5. Insurance Requirements: Detailed insurance specifications and certificates

6. Compliance Requirements: Specific regulatory and compliance obligations including customs requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Document Type

Broker Agreement

Cost

Free to use
Relevant legal definitions


























Clauses






























Industries

Supply of Goods and Services Act 1982: Primary legislation governing service contracts and implied terms in England and Wales. Essential for defining the basic service obligations and standards in freight agent contracts.

Carriage of Goods by Sea Act 1992: Crucial legislation when maritime freight is involved. Governs rights, liabilities and obligations in sea freight arrangements.

Contract Law (Rights of Third Parties) Act 1999: Regulates how third parties may enforce terms of a contract. Particularly relevant in logistics chains where multiple parties are involved.

Competition Act 1998: Ensures fair competition and regulates pricing and market practices in the freight industry.

Commercial Agents (Council Directive) Regulations 1993: Key regulations governing the relationship between principals and commercial agents, including rights, duties and termination provisions.

CMR Convention: International convention governing contracts for international carriage of goods by road. Essential for cross-border freight operations.

HMRC Regulations: Covers customs, excise requirements and VAT considerations in freight operations.

Data Protection Act 2018 and UK GDPR: Legislation governing the handling and protection of customer and shipping data in freight operations.

Modern Slavery Act 2015: Requires compliance and due diligence in supply chain operations to prevent modern slavery and human trafficking.

Health and Safety at Work Act 1974: Establishes health and safety requirements relevant when freight agents handle physical goods.

International Trade Regulations: Encompasses import/export requirements and sanctions compliance for international freight operations.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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