Terms and Conditions Transport

Sample / Template / Example of Terms and Conditions Format for Purchase Order of Transport Services in India in word/ .doc

The rates of transportation from various destinations is given in above Purchase Order and these rates are subject to revision in the following events :

i) The rates mentioned in the above Purchase Order are based from various destinations via transhipment point / direct to our Works.

ii) All the rates are firm till their validity period and will not be subject to change for any reason whatsoever except for change in diesel prices. In the event of change in diesel price, the rates shall be revised only when the cumulative change (increase or decrease) is Rs.2.00 per Liter or above. The transport rates will be revised to the extent of 40% (thirty percent) of the percentage change in diesel price.

01. You must have local offices at different load point destinations.

You must have an e-mail system to receive and reply to queries within 24 hours. Apart from this it will be your responsibility to give regular feed back to the loading and unloading point on the movement of the truck by e-mail. All vehicles (engaged from transshipment point) must have a mobile phone whose number must be informed to our Head Office Logistic Department by email.

02. Your membership of the Indian Banking Association is an essential part of this contract and it will be your responsibility to ensure continuity of this membership during the tenure of this contract.

03. Our Purchase Department will advise your local representative at different load point destinations of our requirement of trucks for our Works atleast 24 hours prior to the requirement. Trucks must be placed at the site of loading within the stipulated time by supplier. We shall have the discretion to refuse or return the truck which reports for loading after the stipulated time and in such case any penalty that may be recoverable from you as per Clause 5 of this agreement shall be so recovered. No claim for compensation will be entertained for refusal on our part to load or accept trucks after stipulated time.

04. In the event of your failure to place trucks at different load point destinations on which contract is given to you against requisitions given atleast 24 hours in advance within the stipulated date and time, Company reserves the right to take trucks from alternative sources and any financial loss sustained by us by way of higher freight will also have to be made good by you. Our compensation claim in this regard will be fully binding on you and we shall be free to adjust the amount from your pending bills.

05. The goods will be carried by you safely and delivered within the agreed time period as mentioned in this Annexure from different load point destinations to our Works and our acknowledgement of receipt will be obtained by you and submitted to us along with the bills for payment.

06. All goods will be insured by us at our cost. However, any shortage at the time of delivery will be made good by you at prevailing purchase prices. Any damage due to negligence on your part or on the part of your employees or servants or agents shall also be recoverable from you.

07. Notwithstanding that insurance coverage will be obtained by us, it shall be your responsibility to ensure safety of our products handed over to you for carriage both in respect of quantity and quality from the time these are handed over to you until they are delivered to our Works from various destinations. In particular, you will ensure at all times that the goods are always carried with a complete covering of good quality tarpaulin and not exposed to rain or water, sun, dust etc.

08. If the products entrusted to you are totally damaged as a result of accident and such accident is not attributable to the negligence or criminal act of yourselves or your servants and agents (our decision in this respect being final), then in such cases only you shall have no liability to the extent determined by us. In the event of accident it would be your responsibility to send a copy of the original Police Report along with its English Translation supported by photographs of the accident at the shortest possible time as first hand information to us.

09. Your representative and/or agents/servants (who shall include drivers of trucks placed by you even though the trucks may not actually belong to you) shall sign our documents while taking delivery of our goods and this acknowledgement shall be conclusive proof of the delivery of our goods to you.

10. Our stores remains closed on Sunday and declared holidays and deliveries on these days may not be possible and therefore no detention charge will be paid for these days. On other days the trucks must report to our Stores before 2 P.M. In case trucks report at our Stores beyond the above stipulated hours, no detention charge shall be paid by us.

11. You will make necessary arrangements to ensure that goods are properly unloaded and loaded under your supervision at the transhipment point and they are not damaged either by careless handling or by exposure to rain, water or fire etc.

12. Any delays beyond the stipulated transit time shall attract penalty at the rate of Rs.50/- per day of delay for the first 2 days and Rs.100/- per day from the third day upto and including the 7th days and Rs.200/- per day from the 8th days onwards. Such penalty, which shall be recovered from you, shall be without prejudice and we shall be free to initiate such other actions as the circumstances may call for. However, this penalty will not be applicable incase of acts of God like earthquake, floods, riot and strike anywhere on the usual route to our Works from the intended destination. The stipulated transit time for various destinations is given in this Annexure. In case the goods are transported to the respective destinations before maximum time allowed to you, you shall be allowed a bonus @ Rs.50/- per day for the first two days saved and Rs.100/- per day for saving between three days upto and including seven days.

13. In case goods are detained more than 12 hours at transhipment point or at any other place enroute to intended destination, for reasons other than acts of God like earthquake, floods, riot and strike, the Company shall be free to arrange alternative mode of transportation of such goods from the place where the goods are lying to the intended destination. Extra freight charges, if any, paid by us shall be reimbursed by you.

14. If for any reason including the acts of God mentioned in point No.13 above, the trucks are delayed enroute, it shall be your responsibility to bring the fact of such delay or detention to our notice and our authorised representative at Head Office as well as our nearest branch office in writing at the earliest possible opportunity.

15. All bills must be duly supported by signed and stamped receipts by us, certificates regarding shortage and damages (if any) and a copy of shortage/damage certificate given by our Works, shall be submitted by you to our Head Office. It shall be our endeavour to pay your bills within 60 days from the date of receipt of your bills subject to such deductions as are being expressly provided for under various clauses of this agreement.

16. You shall not appoint or arrange any sub-carrier under you to perform or discharge any of the obligations under this agreement without our prior express written permission.

17. The Conditions of Carriage, if any, contained in your Consignment Notes to the extent that these are in conflict with or are repugnant to the conditions of Carriage as contained in this agreement shall be null and void and shall have no effect.

18. You shall instruct the drivers of trucks sent by you to the supplier’s load point for loading of our materials to observe the discipline, rules and regulations of our supplier and to ensure movement/parking of all vehicles as per directions of the authorised representatives of our supplier. Any damage caused to our supplier’s property or our property by your trucks or by your staff or servants or agents either willingly or otherwise shall be made good by you at rates as determined by us and our decision in this regard shall be final.

19. It shall be your responsibility to ensure that all statutory obligations with respect to the trucks and labour and/or staff or agents entering our factory are met with by you. In the event of your failure to do so and in the event of not having to discharge such obligations on your behalf you shall indemnify us for all such expenses incurred by us on your account.

20. Normally material despatched to our Works are off-loaded in our Stores godowns. In the rare event of our requiring you to store our material no storage charge would be paid for any period upto 30 days. Storage charge beyond this period will be paid as mutually agreed between us.

21. It is clearly understood that this agreement is not exclusive and we shall have the option to engage the services of other transport contractors as may be felt necessary by us.

22. The destinationwise freight rates as mentioned in the Purchase Order shall remain in force till the validity of this contract as mentioned in the Purchase Order and shall not be varied under any circumstances other than these mentioned hereinabove.

23. This agreement shall take effect from 1st May, 2013 and shall remain valid till 30.04.2014.

24. Notwithstanding the provisions of Clause 23 above either party may terminate this agreement by giving 30 days notice in writing. However, the agreement may be terminated forthwith without any notice by us, if breach of any of the terms and conditions of the agreement as laid down above is committed by you and on happening of any of the following events :

i) If the transporter commits any breach of the terms and conditions of the agreement.
ii) If the transporter acts in a manner prejudicial to the interest of the Company.
iii) If distress, execution or other process of the court is issued against the transporter or if any liquidator, administrator or receiver is appointed in respect of the property or effects (or any part thereof) of the transporter.
iv) If the transporter or any of its Directors is declared insolvent.
v) If the transporter causes or threatens to cause to carry on or close their business.
vi) If the transporter goes into liquidation voluntarily.
vii) If the transporter company is dissolved.
viii) If the transporter attempts to involve other transporters as interested parties in this agreement
ix) If the transporter’s performance is found unsatisfactory at the sole discretion of the Company.
x) If the transporter’s registration with Indian Bank Association is suspended or cancelled.

The Company’s decision as to the occurrence of any of the events mentioned in this clause shall be final and binding on the transporter. The termination of this agreement shall be without prejudice to any claim, remedy or right of action accrued to the Company against the transporter.

25. Any dispute arising out of or in connection with this agreement shall be referred to arbitration by a sole arbitrator as may be agreed upon or in case of disagreement by two arbitrators, one to be nominated by each party. The said two arbitrators before entering upon arbitration will appoint an umpire to decide on questions on which the said two arbitrators may differ. The arbitration will be done as per Arbitration Act, 1940.

26. These terms & conditions agreed shall be taken to have been made at Kolkata at the Office of the Company and any action arising therefrom shall take place in Kolkata and Kolkata Court shall have exclusive jurisdiction over any dispute or claim.

These terms & conditions are being sent to you in duplicate. Kindly sign the same and return a copy to us as a token of your acceptance.

Thanking you,

Yours faithfully



We have read and understand all the terms and clauses of the agreement. We have fully agreed and accepted the same.



Post a Comment