A throughput agreement is a contract that outlines the terms and conditions between two parties for the transportation of goods or services. It is commonly used in industries such as transportation, logistics, and energy.
A typical throughput agreement sample would include the following components:
1. Parties involved: This section outlines the names and addresses of the parties involved in the agreement.
2. Term of agreement: This section specifies the length of time for which the agreement will be valid.
3. Scope of services: This section outlines the services that will be provided by the transporter, including the schedule and frequency of shipments.
4. Rates and fees: This section specifies the rates and fees that will be charged by the transporter for their services.
5. Responsibilities of the parties: This section outlines the responsibilities of both the transporter and the customer. This includes any regulatory requirements or permits required for the transport of the goods or services.
6. Liability and indemnification: This section specifies the liability and indemnification of both parties in case of any damages or losses.
7. Termination: This section outlines the termination clauses of the agreement, including the conditions under which the agreement can be terminated.
8. Governing law and dispute resolution: This section specifies the governing law and dispute resolution process in case of any disputes.
In summary, a throughput agreement sample is a detailed contract that outlines the terms and conditions for the transportation of goods or services between two parties. It is crucial to ensure that such agreements are carefully reviewed and understood by all parties involved to avoid any disputes or legal issues.