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Simple English definitions for legal terms
contract carrier
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A quick definition of contract carrier:
A contract carrier is a person or company that agrees to transport people or goods for a fee. They are different from common carriers, which are companies that offer transportation services to the public. Private carriers are also a type of contract carrier, but they are not required by law to accept business from anyone who asks. A marine carrier operates on water, while a non-vessel-operating common carrier is a freight forwarder that contracts with a shipper and a carrier to transport goods. In insurance, a contract carrier is an insurer.
A more thorough explanation:
A contract carrier is an individual or organization that agrees to transport passengers or goods for a fee. They differ from common carriers, which are commercial enterprises that offer transportation services to the public. Private carriers are also a type of contract carrier, but they are not required by law to accept business from the general public.
Examples of contract carriers include:
- A trucking company that contracts with a business to transport their products
- An airline that contracts with a corporation to provide transportation for their employees
- A shipping company that contracts with a manufacturer to transport their goods overseas
These examples illustrate how contract carriers provide transportation services to specific clients who have agreed to pay for their services. They are not obligated to transport goods or passengers for anyone else, unlike common carriers who are required by law to transport anyone who pays the approved fare or charge.