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.
Contracts vs. Law pt1
Discussion in 'Freight Broker Forum' started by ttnae, Nov 9, 2020.
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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
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An agreement is a contract, you have an offer and acceptance, the terms are spelled out and agreed to.
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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.
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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 Thanks this.
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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 filingLast edited: Nov 10, 2020
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