Freight Agent Agreement for the United Kingdom

Freight Agent Agreement Template for United States

A Freight Agent Agreement is a legally binding contract used in the United States that establishes the relationship between a freight company (Principal) and an independent agent who sources and manages freight shipments. The agreement complies with U.S. Department of Transportation regulations and state-specific requirements, outlining commission structures, operational territories, and performance expectations while addressing liability and insurance requirements under federal transportation laws.

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What is a Freight Agent Agreement?

The Freight Agent Agreement serves as the foundational document governing the business relationship between freight companies and their independent agents in the United States. This agreement is essential when a freight company wishes to expand its network through independent contractors rather than employees. The document addresses crucial aspects including territory rights, commission structures, operational procedures, and compliance with federal and state transportation regulations. It's particularly important for maintaining clear boundaries in the principal-agent relationship while ensuring compliance with FMCSA requirements and other relevant transportation laws.

What sections should be included in a Freight Agent Agreement?

1. 1. Parties: Identification of the Principal and the Freight Agent

2. 2. Background: Context of the agreement and brief description of the business relationship

3. 3. Definitions: Key terms used throughout the agreement including regulatory references

4. 4. Appointment and Scope: Terms of agent appointment and scope of services

5. 5. Agent's Duties and Responsibilities: Detailed obligations of the freight agent including compliance with federal and state regulations

6. 6. Principal's Duties and Responsibilities: Obligations of the principal company including regulatory compliance support

7. 7. Compensation: Commission structure and payment terms

8. 8. Term and Termination: Duration of agreement and termination provisions

9. 9. Confidentiality: Protection of confidential information and trade secrets

10. 10. Compliance with Laws: Obligations regarding regulatory compliance and maintaining licenses

11. 11. Representations and Warranties: Standard representations including licensing and regulatory compliance

12. 12. General Provisions: Standard boilerplate clauses including governing law and jurisdiction

What sections are optional to include in a Freight Agent Agreement?

1. Non-Compete: Restrictions on competitive activities during and after the agreement term

2. Insurance Requirements: Specific insurance coverage requirements beyond statutory minimums

3. Training and Support: Details of training and ongoing support provided by principal

4. Data Protection and Privacy: Specific obligations regarding data handling and privacy compliance

5. Environmental Compliance: Specific environmental obligations and compliance requirements

What schedules should be included in a Freight Agent Agreement?

1. Schedule A - Territory: Defined geographical area of agent's operations

2. Schedule B - Commission Structure: Detailed breakdown of commission calculations and payment terms

3. Schedule C - Operating Procedures: Standard operating procedures and requirements

4. Appendix 1 - Required Documentation: List of required licenses, permits, and certifications

5. Appendix 2 - Service Standards: Performance metrics and service level requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Document Type

Broker Agreement

Cost

Free to use
Clauses
Industries

Interstate Commerce Act: Federal legislation governing interstate transportation and commerce, providing the framework for freight transportation regulations

FMCSA Regulations: Federal Motor Carrier Safety Administration regulations governing safety standards, licensing, and operational requirements for freight transportation

MAP-21: Moving Ahead for Progress in the 21st Century Act - legislation affecting freight broker requirements and safety standards

Carmack Amendment: 49 U.S.C. ยง14706 - Federal law governing carrier liability for loss, damage, and delays in interstate shipments

Property Broker Regulations: 49 CFR Part 371 - Federal regulations specifically governing property broker operations and responsibilities

Uniform Commercial Code: Standardized state laws governing commercial transactions, including provisions relevant to shipping and freight contracts

Fair Labor Standards Act: Federal law establishing wage, overtime, and employment standards that may affect agent relationships

Sherman Antitrust Act: Federal antitrust law prohibiting anti-competitive practices and monopolistic conduct in interstate commerce

Surety Bond Requirements: Federal requirement for a $75,000 minimum surety bond for freight brokers and freight forwarders

State Licensing Requirements: Various state-specific licenses and permits required for freight agents operating within particular jurisdictions

Data Protection Requirements: Federal and state regulations governing the handling, storage, and protection of sensitive business and personal information

Environmental Regulations: EPA and state-specific environmental requirements affecting transportation and freight operations

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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