Fleet Service Agreement

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Fleet Service Agreement

The fleet service agreement is a legally enforceable agreement that considers the safety concerns of the ship owners, managers, and superintendents working in the ship. The aforesaid agreement establishes a formal relationship between the maintenance providing company and fleet owners.

What Is Fleet Service Agreement?

Generally, a Fleet Services Agreement is a legal contract between a fleet owner or manager and company which aims to provide maintenance of the ship. This agreement provides the details of fleet management, fuel card, service applicable, fees, etc.

Who Takes a Fleet Service Agreement?

A Fleet Services Agreement is an agreement is made between a fleet owner and the maintenance providing company for the ship. It is a maintenance program designed to ensure the safety concerns of superintendents, fleet managers, and ship owners.

What Is the Purpose of a Fleet Services Agreement?

A fleet services agreement acts as a measure to avoid any sort of misunderstanding and confusion between the fleet owner and maintenance providing company. It becomes a legally bound contract for both the parties involved and thus provides legal security to both of them in case of future contingencies.

Contents of a Fleet Service Agreement

The contents of a Fleet Services Agreement are provided below:

  • Name and address of the parties involved i.e., investor and the company
  • Date of the Agreement
  • Duration of the Agreement
  • Terms and conditions
  • Scope of Services
  • Compensation
  • Fuel
  • Operations and Management
  • Salaries
  • Routes and Schedules
  • Records and Reports
  • Indemnification
  • Insurance
  • Operation personnel/driver qualifications
  • Details of termination of Agreement
  •  Date of Renewal of Agreement

How to Draft a Fleet Service Agreement?

The process of drafting of a convertible note agreement has been annexed below;

  • Mention the details of Name and address of the parties involved i.e., investor and the company
  • Mention the date and duration of the Agreement
  • Mentions the terms and conditions, the scope of services, fuel requirements and details of the operation management
  • Mention the compensation amount, mode of payment and time such as monthly or yearly
  • Details of salaries, routes and schedules, indemnification, insurance
  • Details of termination of Agreement
  •  Date of Renewal of Agreement

Furthermore, this agreement can also involve negotiations prior to it being draft. However, the negotiation process of any agreement solely depends on the choices of the parties involved in an agreement, whether they want to do it individually or appoint a third party or attorney to do it for them.

Benefits of a Fleet Service Agreement

This agreement provides a means to resolve possible disputes between the parties involved. However, as the agreement is legally enforceable, the parties are bound to perform their obligations as stated terms and conditions of the contract.

Though the independence of the fleet owners to work as per convenience sometimes is restricted due to the signing of such agreements, this agreement, by and large, help streamline coordination between both the parties.

What Happens in Case of a Violation?

In case of violation of the Fleet Services Agreement either of the parties involved, they can sue each other of breach of contract and also claim for compensation considering the terms and conditions of the Agreement.

In case the agreement provides the remedies for breach of agreement, then the parties can settle the dispute accordingly based on these remedies.

The need for legal documentation is an essential part of any business dealing. Fleet Services Agreement is one of them that helps to ensure that both the fleet owner and maintenance providing the company’s legal rights and obligations towards each other are protected.

[Also Read: Professional Services Agreement]

Sample for Fleet Services Agreement

A sample of the agreement can be downloaded from below.

Fleet Services Agreement

Fleet Services Agreement

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