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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.
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]. Recitals 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; and Agreement 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 freight. 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 Carrier. 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 the equipment. 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 Carrier] 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 Broker’s customer.”]. 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 © Copyright 2012 Docstoc Inc. 3 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 other party. 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. Broker:________________________ By ________________________ Its ________________________ Date ________________________ Carrier: ________________________ By ________________________ Its ________________________ Date ________________________ © Copyright 2012 Docstoc Inc. 4
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