Advisory Case on Proactively Eliminating Risks in an Overseas Logistics Agency Agreement

1. The Client's Situation

The client, which was expanding its overseas e-commerce business, requested legal advice in order to enter into a contract with a logistics agency that would handle global shipping and customs clearance, including in the United States. However, the draft contract presented by the counterparty contained numerous provisions that excessively expanded the consignor's liability or were disadvantageous with respect to contract termination and damages. In particular, key provisions such as the penalty standards and liquidated damages for SLA non-performance, the entrustment of personal information, and the exit (de-listing) procedures lacked specificity, creating a high possibility of legal disputes.

Your Legal Team reviewed all the contract provisions to clarify the scope of the logistics company's liability and adjusted them to protect the consignor's rights to the greatest extent possible. In particular, it specified the limits of the consignee's liability in the event of incidents such as logistics delays and misdeliveries, and clearly set out matters essential to practice, such as the settlement conditions and the requirements for service suspension. It also reflected in the contract the handling of inventory and settlement procedures upon exit, as well as the performance liability related to personal information protection, thereby eliminating unnecessary sources of dispute.

By concluding a contract with legal risks removed in advance, the client was able to effectively prevent disputes that could arise in the future and to entrust its overseas logistics operations in a stable manner. Even after concluding the contract, the client was able to receive practical assistance in improving its supply chain management process in accordance with the advice provided.