• The contract of carriage is the cornerstone of the legal and commercial relationship between haulier and customer.
• Contract law principles are applied specifically to the carriage of goods.
• The agreed conditions of carriage form the basis of the legally binding relationship between the operator and customer.

4.1 PRIVATE AND COMMON CARRIERS

• The distinction between private and common carriers remains relevant in law, particularly regarding liability.
• Private carriers:
• Can decide whether or not to carry a person's goods.
• Decisions can be based on normal commercial considerations such as suitability, convenience and profitability.
• Strict legal liability for loss or damage should only arise where the customer can prove negligence by the carrier or its staff.
• In practice, carriers may accept wider contractual liability through their conditions of carriage.
• Common carriers:
• Have no discretionary power to refuse a consignment and must carry goods offered to them.
• Have absolute liability for damage or loss, extending beyond negligence.
• Liability applies whether or not the carrier was at fault.
• The training material states that no road transport carriers today are common carriers and that even railways are classed as private carriers.
• Transport operators should make it clear to customers that they are private carriers.

4.2 CONDITIONS OF CARRIAGE

• Transport operators need written terms and conditions setting out the basis on which they agree to carry customers' goods.
• These are known as conditions of carriage.
• Operators can develop their own conditions.
• The conditions agreed by the operator and customer form the basis of the legally binding contract.
• The Road Haulage Association (RHA) and Freight Transport Association (FTA) have produced model conditions of carriage for members.
• The training material states that RHA conditions are more widely used in the hire-and-reward transport sector.
• Main points identified in the RHA conditions:
• Private carrier status – the haulier carries goods on the condition that it is not termed a common carrier.
• Carrier liability – liability for loss or misdelivery unless caused by specified exceptions.
• Exceptions include:
• Act of God.
• Negligence by the owner/sender, such as bad packing or improper labelling.
• Natural deterioration of goods.
• Consignee failing to accept delivery within a reasonable time.
• Limitation of liability – normally £1,300 per tonne for loss or misdelivery where no other arrangement is made.
• Sub-contracting – the carrier may employ a sub-contractor.
• There is no automatic requirement to tell the consignor that work will be subcontracted, but the subcontractor's name must be supplied to the consignor on request.
• Lien – the carrier has a right to retain customers' goods until outstanding charges are paid.
• If the lien is not satisfied within a reasonable time, the carrier may sell the goods, retain the amount due and return the balance to the customer, less sale expenses.
• Law and jurisdiction – the training material states that the contract is governed by English law and UK courts.