Policy & Compliance
“ Failure to incorporate the STC increases the risk that Members will not be able to rely on them if a dispute arises
customer accepts the Member’s offer. A customer requests a price to move cargo from A to B from a BIFA Member. By quoting, the Member is making an ‘offer’; as soon as the client accepts the price there is an ‘acceptance’ and a legally binding contract has been entered into. If the staff member failed to advise the client that the contract was subject to BIFA STC before the price was accepted by the client, the terms would not be engaged. A subsequent e-mail stating that the STC applied would be ineffective, because it came after the conclusion of the contract. Incomplete noti fi cation: Another issue is that the terms of advising that the STC were incorporated have not been fully met. The most common failure we encounter is when staff send out only the front of a quote or transport document which states that the STC are printed on the reverse. In this case the STC will not be incorporated until the client is sent the reverse side of the documentation. Multiple trading conditions: Many Members trade under different terms, dependent on the nature of the business undertaken. The BIFA STC are used by Members for their freight forwarding activities, but their warehousing activities are often covered by the UKWA terms. It is important that it is clearly stated which terms apply to individual contracts. Whilst on the
subject of clarity, it is essential that where reliance is placed on links to a website to incorporate the BIFA STC, that the client is directed to the specific page applicable to the STC (see QR codes, right, to England, Scotland and Northern Ireland versions). Amended terms: The last issue we hear of at BIFA is “the battle of the forms”. In this scenario the client has queried or declined to accept a particular clause within the terms. Effectively this is a proposed amendment to the STC, and the Member needs to take appropriate steps such as rejecting the amendment or suggesting more acceptable wording. BIFA has been advised that failure to do so means that the Member has accepted the client’s amendments. It is hoped that this article has highlighted the main pitfalls to be avoided when incorporating the BIFA STC into contracts with clients. Conversations regarding the STC indicate that they are not fully understood by clients nor Members. As a whole, all clauses of the STC are important but some have greater importance than others. From a personal viewpoint, the writer would like to highlight that no goods are insured unless agreed in writing (Clause 11) and link that to Clause 26 which clarifies that the forwarder’s liability is limited.
BIFA STC 2021 – England
BIFA STC 2021 – Scotland
BIFA STC 2021 – Northern Ireland
October 2024 | 13
www.bifa.org
Made with FlippingBook Annual report maker