§ 2137 Freight Payment Liability Rules

The person who sends goods is normally responsible for paying the shipping cost, but if they agree that the person receiving the goods will pay and the carrier lets the receiver take the goods, the sender can't later be forced to pay.

Key Takeaways

•The sender is usually responsible for freight charges.
•If the contract says the receiver will pay and the carrier agrees, the sender can't be made to pay later.
•The carrier must rely on the receiver's payment, not the sender's.

Example

A small business hires a carrier to ship a package to a customer. The business and carrier sign a contract that says the customer will pay the shipping fee, and the carrier delivers the package to the customer.

Because the carrier accepted the customer as the payer and let them take the package, the carrier cannot later go back and demand the business pay the shipping cost.

The consignor of freight is presumed to be liable for the freightage, but if the contract between him and the carrier provides that the consignee shall pay it, and the carrier allows the consignee to take the freight, he cannot afterwards recover the freightage from the consignor.

Key Takeaways

•The sender is usually responsible for freight charges.
•If the contract says the receiver will pay and the carrier agrees, the sender can't be made to pay later.
•The carrier must rely on the receiver's payment, not the sender's.

Example

Because the carrier accepted the customer as the payer and let them take the package, the carrier cannot later go back and demand the business pay the shipping cost.

Key Takeaways

Example

References

§ 2137 Freight Payment Liability Rules

Key Takeaways

Example

References

Key Takeaways

Example

Related Statutes

References

Key Takeaways

Example

Related Statutes

References