Regulations On The Contract Of Freight Transportation

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Freight transportation is an integral part of the process for the sales and business of an enterprise. The freight transportation not only stops at domestic transportation but also transports goods internationally, to other countries around the world. So, what are the regulations on the contract of freight transportation by laws of Vietnam?

The freight transportation is carried out on a contract basis between the carrier and the hirer. The contract of freight transportation is an agreement between involved parties that the carrier is obliged to deliver the goods to the agreed destination and deliver the goods to the person entitled to receive them, and the hirer is obligated to pay the shipping service fees and other fees to the carrier.

The regulations on the contract of freight transportation about the subject of the contract of freight transportation

The subject of the contract of freight transportation shall fulfill the following requirements:

Participants in the transaction have legal personality and/or legal capacity in conformity with such transaction[1];
Participants in the transaction act entirely voluntarily[2].

The regulations on the contract of freight transportation about the object of the contract of freight transportation

The contract of freight transportation has the object of the goods, including all types of movable property, including movable property formed in the future. However, goods that are allowed to be transported must not be prohibited goods, dangerous goods, or goods banned from circulation on the market.

The regulations on the contract of freight transportation about the content of the contract of freight transportation

Among the regulations on the contract of freight transportation, the issues of time and place of freight are the most important. The parties have to agree with each other on where to ship the goods, who is the recipient, and at what time.

Rights and obligations of the parties in the contract of freight transportation

The carrier has the following main rights: to check the authenticity of the property and the bill of lading or equivalent source document of transport; to refuse to transport property that is different from the one agreed in the contract; to demand the full and timely payment of the freight charges by the customer, and to refuse to transport property if the carrier knows or should know that the transacting of such property is prohibited or the property is of a dangerous or toxic nature. Along with that, the carrier has the following main obligations: to transport the property in its entirety and safely to the agreed destination at the agreed time; to deliver the property to the person entitled to receive it; to bear all costs related to the transport of the property, unless otherwise agreed; to purchase civil liability insurance as required by law, and to compensate the customer for damage where the loss of or damage to the property is caused by the fault of the carrier unless otherwise agreed or otherwise provided by law.

The hirer has the following main obligations: to pay in full the freight charges to the carrier, at the time and by the method of payment as agreed; to provide necessary information about the transported property to ensure its safety, and to take care of the goods during transport if so agreed. The hirer has the right to demand the carrier to transport the goods to the agreed destination at the agreed time and to receive directly the goods which have been transported, or appoint a third person to receive it.

The above is an overview of the regulations on the contract of freight transportation. If you have trouble with legal issues regarding The regulations on the contract of freight transportation, please contact us: Phuoc & Partners is a professional consulting firm established in Vietnam which currently has nearly 100 members working in three offices in Ho Chi Minh City, Hanoi, and Danang. Phuoc & Partners. It is rated as one of the leading consulting firms specializing in civil litigation in Vietnam that has leading practice areas in the legal market such as Labour and Employment, Taxation, Merger and acquisition, Litigation. We are confident in providing customers with optimal and effective service.

[1] Article 117.1.a Civil Code 2015

[2] Article 117.1.b Civil Code 2015

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