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Contracts vs. Law pt1

Discussion in 'Freight Broker Forum' started by ttnae, Nov 9, 2020.

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  1. Nov 9, 2020 #1
    ttnae

    ttnae Light Load Member

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    Broker contracts often require/request that a carrier waive or give up rights that are granted in law.

    CARRIER agrees to look solely to broker for payment of all freight and other charges. CARRIER agrees that its sole recourse in the event of nonpayment shall be against broker. CARRIER shall not seek payment from shipper, consignee, or third parties for any invoice or payments.

    The law holds shippers/consignees responsible for the actions of their agents (the broker) and IF the broker does not pay then, by law, you can seek payment from the responsible party P-C-T on the bol.

    A serious question to brokers. Why should a carrier be expected to waive their rights to collect their money? Again, not looking for a childish argument, I am curious to know if there are situations where the carrier has done things in large numbers or abused this law to their favor in some fraudulent manner.

    We have used this 4 times to collect when brokers go out of business or are otherwise unable to pay. In one case, the load had been double brokered and the original broker paid the invoice which was $6,600.

    Please advise.

    Thank you.
     
    ttnae, Nov 9, 2020
    ttnae, Nov 9, 2020
    #1
    6wheeler Thanks this.
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  3. Nov 9, 2020 #2
    Pepper24

    Pepper24 Road Train Member

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    First I doubt you have a contract with a broker it’s most likely an agreement you signed which not as binding as a contract.But I’m not sure about the situation you have brought up but since even if you do have a contract and there is something that is illegal then the entire contract is illegal and would be unable to enforce
     
    Pepper24, Nov 9, 2020
    Pepper24, Nov 9, 2020
    #2
  4. Nov 10, 2020 #3
    p608

    p608 Road Train Member

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    An agreement is a contract, you have an offer and acceptance, the terms are spelled out and agreed to.
     
    p608, Nov 10, 2020
    p608, Nov 10, 2020
    #3
  5. Nov 10, 2020 #4
    wichris

    wichris Road Train Member

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    Have never worried about that clause. Late/no pay, we go to the customer. Have had a few threaten legal action, i just laugh, tell them to say it in court and hang up.
     
    wichris, Nov 10, 2020
    wichris, Nov 10, 2020
    #4
    Dino soar, DUNE-T and User666 Thank this.
  7. Nov 10, 2020 #5
    User666

    User666 Medium Load Member

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    The minute both parties sign a written "agreement" it becomes legally binding. I've never seen an agreement that wasn't structured into multiple clauses. This makes it a contract enforceable via the courts. Also, severability clauses keep the contract as a whole intact even though a portion of it may have been breached.
     
    User666, Nov 10, 2020
    User666, Nov 10, 2020
    #5
  8. Nov 10, 2020 #6
    ttnae

    ttnae Light Load Member

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    LOLOL!!!!! Awesome. Us too.
     
    ttnae, Nov 10, 2020
    ttnae, Nov 10, 2020
    #6
  9. Nov 10, 2020 #7
    ttnae

    ttnae Light Load Member

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    True, there are a few laws that are protected by statements that prohibit their being waived. I wish that more of them were.
     
    ttnae, Nov 10, 2020
    ttnae, Nov 10, 2020
    #7
    Dino soar and User666 Thank this.
  10. Nov 10, 2020 #8
    bad-luck

    bad-luck Road Train Member

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    In my opinion. I think the reason the brokers don't want carriers to know what they are being paid is.... Carriers would want higher rates when they see how much the broker is being paid. This is the reason the brokers association is stating they will loose millions of dollars....

    The problem I have is we have no choice but to comply with the laws. Otherwise we face being put out of service, ticketed, have DOT numbers and drivers licenses suspended ect... But yet there are no repercussions for brokers who violate the law. Doesn't seem fair does it??
     
    bad-luck, Nov 10, 2020
    bad-luck, Nov 10, 2020
    #8
  11. Nov 10, 2020 #9
    User666

    User666 Medium Load Member

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    White collar criminals rarely see significant punishments compared to their blue collar associates.
     
    User666, Nov 10, 2020
    User666, Nov 10, 2020
    #9
    bad-luck Thanks this.
  12. Nov 10, 2020 #10
    6wheeler

    6wheeler Road Train Member

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    I have legal experience in this area of non-payment.
    1. Sue the broker first. Forget about filing on the bond.
    2. If that fails, sue the shipper. See how fast you'll get paid then. The shipper is going to call the broker and ask why am I being sued.
    3. Sue the receiver...

    You'll need to send demand letters for payment before taking any of the steps and wait at least 60 days before filing
     
    Last edited: Nov 10, 2020
    6wheeler, Nov 10, 2020
    6wheeler, Nov 10, 2020
    #10
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