1. The Client's Situation
The client is a food distribution company responsible for nationwide institutional catering supply, and was about to enter into a logistics agency agreement with a third-party logistics (3PL) specialist. The contractor's draft contained numerous provisions unfavorable to the consignor (the client) regarding liability for damages, the burden of inventory loss, and food safety management, and a comprehensive legal review of the contract risks was required.
2. Your Legal Team's Advice
Your Legal Team reviewed the entire contract and (1) clarified the scope and standards of liability for damages in cases of inventory loss and damage, and specified the contractor's burden of proof; (2) restructured the framework of provisions on force majeure, insurance, and liability for damages to reasonably adjust the actual scope of exemption from liability; and (3) strengthened the provisions on compliance with relevant laws such as the Food Sanitation Act, and provided a revised draft that specified temperature control and notification obligations for refrigerated and frozen food so as to minimize food safety risks.
3. Outcome
Through this advice, the client established a contract structure that clearly allocated legal responsibility for inventory loss, claims, and food sanitation matters that may arise during the logistics agency process, and was able to conclude the contract on terms with a legal and practical balance in negotiations with the contractor.