This Broker Carrier Agreement allows a broker, on behalf of its client, to engage a
carrier for the carrier's transportation services. This agreement clearly sets forth the
responsibilities of the carrier and the broker under the relationship. The user's specific
terms can be easily inserted into this agreement, thus allowing it to be specifically
tailored to the needs of the user. This agreement is useful for a broker that wants to
engage a carrier's transportation services on behalf of his or her client.
BROKER CARRIER AGREEMENT
This Broker Carrier Agreement (“Agreement”) is made and entered into this _______________
[Instructions: insert date] by _______________ [Instructions: insert name of Carrier],
(hereinafter “Carrier”), located at _______________ [Instructions: insert location] and
_______________ [Instructions: insert name of Broker] (hereinafter “Broker”), located at
_______________ [Instructions: insert location].
WHEREAS both parties have the legal capacity to enter into this Agreement; and
WHEREAS Broker is licensed by the appropriate Federal and State agencies and authorized by
Broker’s customers to arrange for interstate freight and shipping transportation.
WHEREAS Carrier is allowed to work in interstate commerce, desires to enter into a
relationship with Broker to provide the required transportation services, and thereby earn a fee;
NOW, THEREFORE, Carrier and Broker Agree as follows:
1. The above recitals are true and correct and form an integral part of this Agreement.
2. Responsibilities of Broker: The responsibilities of Broker are as follows:
A. Broker shall comply with all federal, state, and local laws related to the brokerage of the
B. Broker represents that Broker’s customers have complied with all governing federal and
state regulations and laws, including:
a. _______________ [Instructions: Set forth any specific regulations or laws]
C. Broker is solely liable for all payments to Carrier. Any failure by Broker to collect
payment from a customer will not relieve the Broker of Broker’s responsibility to pay
D. _______________ [Instructions: Set forth in detail the responsibilities of Broker]
3. Carrier’s Responsibilities: The responsibilities of Carrier are as follows:
A. Carrier agrees to move shipments, pursuant to Broker’s instructions, as follows:
i. _______________ [Instructions: Set forth shipment details]
B. Carrier represents that the following is met:
i. Carrier will maintain the following insurance coverage:
a. General $_______________ [Instructions: Insert number]
b. Auto - $_______________ [Instructions: Insert number]
c. Cargo - $_______________ [Instructions: Insert number]
d. Carrier possesses adequate workers comp insurance under $_______________
[Instructions: insert state] law.
ii. Carrier possesses U.S. DOT safety ratings.
iii. Carrier is legally capable of providing the services considered under this Agreement.
iv. _______________ [Instructions: Set forth in detail responsibilities of Broker]
C. Bills of Lading. Every shipment shall use a standard Bill of Lading, which sets forth the
name of the Carrier. After delivery, Carrier must obtain a signed receipt from the
recipient of the cargo, as designated by Broker. The receipt shall set forth the type and
quantity of product delivered.
D. Carrier will supply all the necessary equipment for transporting the cargo. This
requirement includes paying for expenses related to such equipment and maintenance of
E. Carrier shall only use licensed and competent workers to complete its responsibilities
under this Agreement.
F. No Sub-Contractors. Carrier shall not use any sub-contractor to transport any cargo
arranged by Broker, without the prior written consent of Broker.
G. _______________ [Instructions: Set forth in detail any additional responsibilities of
4. Payment: Carrier shall receive payment from Broker in the amount specified by the
following rates and conditions.
A. _______________ [Instructions: Set forth in detail the payment scheme]
Carrier shall send invoices and proof of delivery to Broker. [Comments: User is free to set
forth a different payment plan]
5. Independent Contractor Status: Broker expressly acknowledges that Broker will be acting as
an independent contractor and not as an employee, for all purposes, including payment of
Social Security withholding tax and all other federal, state and local taxes. The Broker shall
be free to set its own hours and appointments. Broker shall not hold himself out to the public
as an employee, agent, partner or representative of Company.
6. Exclusivity: The appointment of Carrier hereunder is _______________ [Instructions:
insert either “exclusive” or “non-exclusive”] [Comment: User should choose either to
form an exclusive or non-exclusive relationship with the Carrier. If User creates a non-
exclusive agreement, then user should also state “This Agreement does not convey to
Carrier the exclusive right to carry out the transportation services for Broker or
7. Separability and Governing Law: If any portion of this Agreement shall be found to be void
or unenforceable, it shall in no way affect the validity or enforceability of any other portion
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hereof. The following laws and regulations shall govern: (a) The Standard Truckload Bill of
Lading; (b) Common carriers standard claims rules; and (c) the Carmack Amendment as it
applies to cargo claims (49 U.S.C. §14706). Additionally, the general doctrine of federal
transportation law will apply.
8. Term and Termination: The term of the Agreement shall be for ____ [one (1)]. [Comment:
These numbers are not provided for by law, but can be any number the user chooses]
year and shall automatically renew unless terminated by either party. Either party may
terminate this Agreement at any time without cause upon thirty-day written notice to the
9. Time of essence. Time is declared to be of the essence of this agreement.
10. Force majeure. A party shall not be deemed to have defaulted or failed to perform hereunder
if that party's inability to perform or default shall have been caused by an event or events
beyond the control and without the fault of that party, including (without limitation) acts of
Government, embargoes, fire, flood, explosions, acts of God or a public enemy, strikes, labor
disputes, vandalism, civil riots or commotions, or the inability to procure necessary raw
materials, supplies or equipment.
This agreement has been executed by the parties on the day and year first above written.
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