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18 Nov 2015

Beware of Boilerplate Provisions

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You have been negotiating rates with a carrier for weeks or even several months. You have finally agreed on all the new charges, and you are now prepared to review the draft contract to make sure the rates are correct and to sign.

But wait! Have you read the boilerplate provisions that may be buried inside the contract document? If not, you might have agreed to something that you did not realize was included. Boilerplate terminology is standard language found in many legal documents, especially rate contracts. The boilerplate sections are often titled “Miscellaneous”, “General” or “Standard”. The boilerplate can address concepts such as arbitration rights, attorneys’ fees, liability and notice to cancel, to name a few. Moreover, some boilerplate provisions also make reference to other tariffs and rules to which you would be held accountable. These may call for a shorter statute of limitations period or include other provisions that could possibly limit your rights. Alternatively, they may provide some rules that could expand your rights.

AMTR always reviews boilerplate provisions in the course of our audits.  This is the kind of attention to detail that makes us the best at what we do!

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