Common use of Penal Freight Clause in Contracts

Penal Freight. The Purchaser shall be responsible to take delivery of the Contracted Grade of the coal at the Delivery Point and ensure that there is no overloading. Any loss to the Purchaser due to payment of penal freight i.e., any penal freight for overloading charged by the Railways for any consignment shall be payable by the Purchaser. However, if overloading is detected from any particular colliery, consistently during three

Penal Freight. The Purchaser shall be responsible to take delivery of the Contracted Grade of the coal at the Delivery Point and ensure that there is no overloading. Any loss to the Purchaser due to payment of penal freight i.e., any penal freight for overloading charged by the Railways for any consignment shall be payable by the Purchaser. However, if overloading is detected from any particular colliery, consistently during threethree (3) continuous months, on due intimation from the purchaser to this effect, the Seller undertakes to take remedial measures.