Hungarian general conditions of carriage

1. § Scope of Application

1. These freight forwarding terms shall apply to all contracts concluded between the principal and the freight forwarder that are classified as freight forwarding under Hungarian law.
2. If the freight forwarder issues a combined transport document (MTO/CTO), these terms shall not apply.

2. § Freight Forwarding Contract

1. In the freight forwarding contract, the freight forwarder undertakes the obligation to conclude the transportation and other contracts specified in the order in their own name but for the benefit of the principal, and to perform supplementary activities related to the order.
2. These terms shall also apply if the freight forwarder concludes the transportation/other contracts in the name of the principal, or if they are commissioned to take delivery of the goods.
3. The freight forwarder’s offer is only valid if accepted immediately, unless a deadline for the offer’s validity is specified in the offer. In such a case, the order must reach the freight forwarder on the last day of the deadline.
4. The order must be given in writing; if the order is given by phone or verbally, the principal is obliged to immediately confirm it in writing. The principal shall be liable for any consequences arising from the failure to do so.
5. The order must accurately include the information necessary for the freight forwarding contract. The principal shall bear the consequences of any incomplete or inaccurate order.
6. The freight forwarder is not obligated to verify the accuracy of the information provided by the principal.
7. A freight forwarding contract is not concluded if the freight forwarder does not issue an acceptance statement identical to the content of the principal’s offer. If the order is not sufficiently detailed or is inaccurate, the legal relationship arises from the receipt of the corrected or supplemented order.
8. An instruction from the principal that the shipment is to be held at the disposal of a third party cannot be revoked once the third party has acquired the right of disposal over the shipment.

3. § Fulfillment of the Order

1. In fulfilling the order, the freight forwarder is obligated to act with the care expected of a diligent merchant and must primarily represent the interests of the principal.
2. The freight forwarder is obligated to follow the instructions of the principal but must inform the principal if those instructions are unprofessional. The principal shall bear the consequences of any impractical, unprofessional, or delayed instructions.
3. The freight forwarder is obligated to inform the principal of any circumstances that hinder the fulfillment of the order or make any modification to it necessary.
4. If the principal withdraws the order and the freight forwarder has already taken steps to fulfill the order, the principal is liable to compensate for any resulting damages and costs, as well as the freight forwarding fee.
5. If circumstances arise that make it partially or entirely impossible for the freight forwarder to fulfill their obligations, the freight forwarder is entitled to withdraw and claim their costs and a proportional fee.
6. If the principal modifies the original order in such a way that it becomes impossible to fulfill, the freight forwarder may withdraw from fulfilling the contract and claim reimbursement for the incurred costs, as well as their fee.
7. If the freight forwarder has requested but not received instructions from the principal within the necessary time, the freight forwarder is entitled to act at their own discretion. In doing so, the freight forwarder is obligated to consider mitigating any potential damage to the principal and to act in a reasonable manner.
8. In the absence of an explicit prohibition from the principal, the freight forwarder is entitled to forward the shipment through consolidated transport.
9. The freight forwarder is only obligated to know and comply with regulatory provisions directly related to freight forwarding. The freight forwarder is not responsible for compliance with any other regulatory provisions.
10. The freight forwarder is entitled to perform the transportation partially or entirely by themselves
11. In the absence of an explicit declaration, the freight forwarder does not guarantee that the shipment will be forwarded on a specific day or by a specific route.
12. The freight forwarder shall issue a receipt upon the request of the principal.

4. § Handover of the Shipment to the Freight Forwarder

1. When the principal hands over the shipment to the freight forwarder or their agent, the freight forwarder is entitled, but not obligated, to verify the actual details of the shipment, except for the number of items.
2. If the verified data differ from the order details to such an extent that different billing conditions are required, the freight forwarder shall immediately notify the principal of this circumstance, indicating that the data of the offer/order and the actual shipment do not match. All consequences arising from this circumstance (such as delays, rates, costs, etc.) shall be borne by the principal.
3. If the shipment data need to be corrected for any reason, the freight forwarder shall inform the principal and request instructions if necessary.
4. The freight forwarder is not obligated to pack, bundle, or repair the packaging of the shipment, except in cases of urgent damage prevention. In such cases, the principal is required to reimburse the resulting costs.

5. § Dangerous and Special-Handling Shipments

1. Shipments that are dangerous to other goods, assets, or persons, or those that are perishable or otherwise sensitive, may only be handed over to the freight forwarder or their agent based on a prior written agreement with the freight forwarder. The dangerous nature of such shipments must be indicated on the documents and the shipments themselves.
2. The principal or their agent is required to provide the freight forwarder with a signed declaration in advance, indicating the classification of the goods in accordance with the regulations governing the transportation of dangerous goods for the respective modes of transport. The principal is liable for any damages resulting from the failure to do so.
3. If the principal fails to fulfill their obligation to provide information regarding the dangerous nature of the shipment, the freight forwarder is entitled to take any necessary measures to mitigate the risks arising from the nature of the shipment. The principal is obligated to reimburse the freight forwarder for the costs of such measures.

6. § Cargo Insurance

1. The freight forwarder will only insure the shipment based on the principal’s written instructions and at the principal’s expense, according to the insurance terms specified by the principal and the details provided in the order.
2. The mere disclosure of the value of the shipment does not constitute an order for insurance.

7. § Payment

1. The principal is obligated to pay the freight forwarder the freight forwarding fee in the case of a collection fee arrangement, and in the case of a commission settlement, to cover the incurred costs and the freight forwarding commission.
2. In the absence of any other agreement, the freight forwarder’s invoices are due immediately upon receipt, and payment delay occurs immediately without further notice or any other condition. The late payment interest shall be calculated in accordance with the applicable Hungarian laws.
3. The freight forwarder is entitled to request an advance, enter into a separate payment agreement with the principal, and collect costs and fees from domestic principals through immediate direct debit.
4. If the principal promises that a third party will make the payment for the fulfillment of the freight forwarding contract, the freight forwarder may reject this condition, and if the third party fails to pay, the principal is obligated to satisfy the freight forwarder’s claims, including interest.
5. The third party designated by the principal cannot assert any set-off or retention against the claims of the freight forwarder.

8. § Lien, Right of Retention

1. The freight forwarder has a lien over all goods and other assets in their possession or over which they have control through documentation, to the extent of any claims arising from the given freight forwarding order, regardless of whether these claims are due or not.
2. The lien/right of retention also extends to goods or assets that are not related to the given freight forwarding order if the principal’s financial situation endangers the satisfaction of the freight forwarder’s claims or if the debtor fails to settle their debts for an extended period.
3. The freight forwarder may enforce their lien by commercial means without court proceedings.

9. § Liability of the Freight Forwarder

1. The freight forwarder is liable for damages caused by breach of contract, provided they acted negligently. The freight forwarder is not liable for damages caused by carriers, warehouse operators, loaders, subcontracted forwarders, or other service providers engaged by them, unless the freight forwarder failed to exercise the due care expected in selecting these service providers.
2. The parties may agree that the freight forwarder will pursue compensation claims against the aforementioned persons, either in court or out of court, on behalf of and at the risk of the principal. The freight forwarder is entitled to the agreed fee for this activity, regardless of the outcome of the proceedings.
3. If the freight forwarder’s liability is established and the claimant is a domestic entity, the provisions of the Civil Code shall apply to their liability. If the freight forwarder’s liability is established and the claimant is a foreign entity, their liability is limited to the extent that the laws governing freight forwarding contracts in the claimant’s country limit such liability.
4. 1. The freight forwarder is liable for damages to the shipment as a carrier if:
      a) they transported the shipment themselves,
      b) the shipment was forwarded through consolidated transport, and the damage resulted from this,
      c) the damage to the shipment occurred within the scope of their freight forwarding activities.
   2. If the freight forwarder is liable as a carrier, the rules of the actual mode of transportation used and the general regulations shall apply to their liability.
   3. If it cannot be determined during which mode of transport the damage occurred, the extent of liability will be governed by the rules of the mode of transport most favorable to the principal among those used in the combined transportation.
   4. If the freight forwarder’s liability as a carrier is established and the claimant is a foreign entity, the freight forwarder’s liability is limited to the extent that the laws governing such transactions in the claimant’s country limit the carrier’s liability.
5. 1. The freight forwarder is also liable as a carrier if they have expressly and in writing assumed this liability. In such a case, the following supplementary rules shall also apply.
   2. If the freight forwarder has expressly and in writing assumed carrier liability, they are obligated to pay a penalty for late receipt or delivery, calculated on an hourly basis, with the applicable amount published by the Hungarian Association of Freight Forwarders and Logistics Service Providers. The principal may only claim compensation for damages exceeding the penalty if they have communicated their interest in timely delivery and the freight forwarder, being aware of this interest, agreed to meet the deadline. Additionally, the principal must prove that the delay was not caused by an unavoidable circumstance beyond the freight forwarder’s control.
   3. The freight forwarder may also undertake, in writing and for an additional fee, to compensate the principal for proven damages caused to third parties as a result of the delayed performance of the freight forwarding (transportation) contract. This obligation of the freight forwarder under this section does not arise from actual liability but is considered a business service.
      1. In the case of such a claim, the types of potential damages and their expected (estimated) amounts must be specified in the order, along with documents proving that the principal is liable to third parties for any potential damages. After the occurrence of the damage, documents proving that the principal has paid the damages must also be attached.
      2. The freight forwarder does not compensate for damages resulting from irresistible force, natural disasters, government actions, strikes, circumstances that could not be prevented by the freight forwarder or their subcontractor, or other causes not attributable to the normal course of freight forwarding/transportation operations.
      3. The freight forwarder may condition the compensation of damages on the principal transferring to the freight forwarder, if necessary, all the rights the principal holds against other parties in connection with the damage, and providing the necessary documents that substantiate the damage both in fact and in law. The compensation of damages is at the discretion of the freight forwarder if the damage can only be presumed, either factually or legally. If the principal has paid the damages without the prior consent of the freight forwarder, the freight forwarder is not bound by this action.

10. § Statute of Limitations

1. Claims arising from the freight forwarding contract are subject to a statute of limitations of one year. The limitation period begins when the claim becomes due, but no later than on the day the goods are delivered.

11. § Applicable Law. Jurisdiction

1. The material laws of Hungary shall apply to the contracts of the freight forwarder.
2. The parties shall attempt to resolve their disputes amicably.
3. The court with exclusive jurisdiction over all legal disputes between the parties shall be the one at the location of the freight forwarder’s registered office.

The freight forwarder reserves the right to deviate from certain provisions of these GENERAL TERMS either based on a separate agreement or in individual contracts.

*At its meeting on January 28, 2003, the Board of the Hungarian Association of Freight Forwarders and Logistics Service Providers made the following decision: “The Board publishes the penalty amount for Section 9, Point 5.2 of the General Terms and Conditions as follows: EUR 60 per hour, but not exceeding twice the freight charge.”