Plain-English Breakdown of Your Courier & Delivery Contracts

What a good one includes

• A clear breakdown of payment terms, including exact invoicing cycles, payment trigger events, and how fuel surcharges are calculated.
• A detailed summary of service level agreements (SLAs), specifically highlighting delivery windows, acceptable delay margins, and any associated financial penalties.
• A plain-language explanation of cargo liability, detailing who pays for damaged or lost goods and what insurance limits are required.
• A map of operational boundaries, including route exclusivity, minimum volume guarantees, and any restrictions on servicing competing clients.
• A straightforward guide to termination clauses, outlining how much notice you must give or receive to end the contract without penalty.
• A highlight list of hidden operational triggers, such as unexpected vehicle tracking requirements, uniform policies, or mandatory weekend shifts.

Common mistakes to avoid

• Assuming standard industry rates and SLA penalties apply without checking the specific, customized penalty clauses tucked deep inside the contract.
• Overlooking vague consequential damage clauses that could hold your delivery business financially responsible for a client's lost sales or business interruption.
• Failing to verify who actually owns the customer relationship and whether you are banned from working directly with clients after the contract ends.
• Relying on verbal promises from dispatchers or sales reps that directly contradict the written terms in the final signed agreement.

Frequently asked questions