Contracts vs. Law pt1

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

  1. ttnae

    ttnae Light Load Member

    71
    126
    Oct 4, 2013
    0
    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.
     
    6wheeler Thanks this.
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. Pepper24

    Pepper24 Road Train Member

    1,363
    856
    Apr 19, 2016
    0
    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
     
  4. p608

    p608 Road Train Member

    1,841
    2,294
    Nov 10, 2016
    0
    An agreement is a contract, you have an offer and acceptance, the terms are spelled out and agreed to.
     
  5. wichris

    wichris Road Train Member

    2,427
    2,682
    Jan 17, 2011
    0
    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.
     
    Dino soar, DUNE-T and User666 Thank this.
  6. User666

    User666 Medium Load Member

    346
    863
    Sep 22, 2020
    Northeast Ohio
    0
    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.
     
  7. ttnae

    ttnae Light Load Member

    71
    126
    Oct 4, 2013
    0
    LOLOL!!!!! Awesome. Us too.
     
  8. ttnae

    ttnae Light Load Member

    71
    126
    Oct 4, 2013
    0
    True, there are a few laws that are protected by statements that prohibit their being waived. I wish that more of them were.
     
    Dino soar and User666 Thank this.
  9. bad-luck

    bad-luck Road Train Member

    1,483
    1,855
    Nov 16, 2013
    Baltimore, Maryland
    0
    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??
     
  10. User666

    User666 Medium Load Member

    346
    863
    Sep 22, 2020
    Northeast Ohio
    0
    White collar criminals rarely see significant punishments compared to their blue collar associates.
     
    bad-luck Thanks this.
  11. 6wheeler

    6wheeler Road Train Member

    2,609
    4,497
    Aug 30, 2009
    0
    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
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  • Draft saved Draft deleted