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Contracts of carriage are common in transportation, outlining the duties and responsibilities of the carrier and passenger. Basic contract law requires an offer, acceptance, and consideration. Commercial goods have traditional contracts, while passenger contracts are often found on the ticket. Common provisions include force majeure, cancelation, baggage liability, and departure/arrival times. Passengers should read the terms and conditions before purchasing a ticket.
Contracts are part of everyday life for most people, often without even realizing they have entered into a contract. When a person buys a ticket on a common carrier, for example, he has entered into a contract of carriage. Common carriers, such as airlines, buses, trains, and ships, enter into a contract of carriage whenever they agree to carry a passenger or cargo from one place to another. The contract of carriage generally outlines the duties and responsibilities of the carrier, as well as the rights and responsibilities of the passenger or owner of the cargo.
Basic tenants of contract law in most jurisdictions require that there be an offer, acceptance of that offer, and consideration for the formation of a legal contract. In the case of transport of people or goods, the offer is for transport, acceptance takes place when the owner of the goods or the passenger purchases a ticket and the consideration is the ticket price. Once all three of these things have happened, a contract of carriage has been made in most jurisdictions.
When the contract of carriage is for commercial goods, the terms of the contract are often outlined in a traditional contractual form. Both parties to the contract are expected to have read the terms and signed the contract. When carriage is for one passenger, however, the terms of the contract are usually found at the bottom of the ticket, or on the reverse, in small print. Also, in lieu of a signature confirming acceptance of the terms, most common carriers include language along the lines of “the purchase of a ticket constitutes acceptance of the terms found herein.”
While each contract for carriage will be unique, there are common terms found across many contracts. Provisions relating to an act of force majeure or due to force majeure can often be found in a contract of carriage. These provisions generally release the carrier from his responsibilities otherwise stipulated in the contract in the event that an act of God, or other intervening force beyond his control, prevents the performance or performance of his duties under the contract.
Other common provisions found in a contract of carriage include provisions for canceling the contract, liability for any baggage carried by a passenger, and a provision regarding times of departure and arrival. Most private passengers don’t think of the ticket as a contract and, therefore, don’t bother reading the terms and conditions therein unless something goes wrong. In most jurisdictions, a common carrier must provide a prospective passenger with a copy of the terms and conditions before purchasing a ticket, which enables a prospective passenger to understand the contract he or she is entering into before purchasing the ticket if he or she she she chooses to do it.
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