Terms and conditions

Terms and conditions

ITIC always emphasises the importance of using a suitable contract to ensure your position is clear and protected. This includes using a set of terms and conditions which are correctly incorporated.

Having terms and conditions has become increasingly common for ship agents. This gives you as the agent the chance to set the rules that will govern the relationship between you and your principals, and in case a claim arises, the terms can offer certain protections. Core clauses you should look to include are:

  1. Scope of work clause – this helps minimise disputes over what services the agent agreed to provide.
  2. Scope of liability – ITIC recommends this is limited to where the liability was due to the agent’s negligence in providing the agreed services only.  
  3. Limit of liability – this should be capped at a specific figure, or no more than 10 times the annual fee the agent is paid by the principal.
  4. Law and jurisdiction – this sets out where any disputes will be dealt with, making things simpler to handle when a problem arises.
  5. Time bar – ITIC recommends this is set to a reasonable time period e.g. 1 year after the incident or loss occurred.  

Additionally, members are advised to ensure that their terms and conditions are incorporated into every instruction they receive. You can find more information on how to incorporate terms and conditions here. Please note that the specific requirements of individual businesses vary and accordingly no responsibility can be taken for the suitability of these terms and conditions to a specific business or contract. As with all contractual terms it is important that the user ensures that they are properly incorporated in their contract with their counterparty. Members should seek the advice of their usual legal advisor prior to using these terms and conditions.

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