The contract Act, 2056, has mention some liabilities under the section 66 to 70. According to the Act, the liabilities of a carrier are as follows:


  • To carry goods are specific place: It is a liability to a carrier to carry goods safely to the determined destination and deliver than to the said person or his representative.
  • To delivery goods within a prescribed time: If the date of delivery is mentioned in the contract, the carrier must deliver the goods carried to the consignee or his agent within the mentioned time. If the time is not mentioned in this respect, he should deliver then to the consignee or his agent within the reasonable time.
  • To pay compensation: If the goods received from the owner for transportation are lost, destroyed, harmed or damaged or if they do not reach their destination in proper condition, the carrier itself shall be responsible for such loss.
  • Liability of the first carrier: If the goods are carried through two or more carriers or through two or more means of transport and if the goods are cost or damaged in transit, the first carrier, on less otherwise mentioned in the contract, shall be liable for such loss.
  • Liability in case of negligence: It due to negligence or carelessness of the carrier, the goods are lost or damaged in transit, he shall compensate the owner of the goods in a way as mentioned in the contract.
  • Compensation up to ten thousand: The carrier for any loss or damage is not clearly mentioned in the contact, the carrier will not be liable for a sum of more then Rs. 10,000/-
  • Liability to insurance: The carrier should insure the goods against the risk either through the owner or his agent or himself by collecting fees separately for the purpose or take necessary arrangement to avoid the risk.

Limited Liability of Carrier

 According to Sec. 69 of Contract Act, the carrier must pay reasonable compensation to the concerned owner for any loss or damage caused to goods during transportation. But Sec. 68(1) limits the liability of carrier for any loss or damage caused to goods during transportation, on Rs. 10,000 except when the owner of goods or his agent has clearly declared at the time of concluding the contract that the goods to be carried worth more than Rs. 10000.

Exceptions (liabilities of a common carrier)

 The liability of common carrier is strict in case of goods received from the owner for carriage is lost, destroyed, broken, harmed or damaged or in case they do not reach their destination in proper condition for any other reason. Nepalese Contract Act does not mention about the exception of liability of carrier. According to English law if the damage or harm is caused on these exceptional circumstances, the common carrier would not be held liable:


  • If damage is caused by act of natural cause.
  • If damage is caused by declared enemies of the state. This does not include loss or damage to the goods by strike or rebellions during internal riots.
  • Inherent vice in the goods carried. A carried is not liable for losses arising from inherent vice in the goods carried over which he has no control and against which he can not guard. Example liquid goods may evaporate.
  • If the damage has been caused due to defective packaging of goods, the carrier cannot be held liable.
  • If the damage has been cased due to fault or fraud of consigner, the carrier cannot be held liable.
  • In the circumstance where the law has clearly exempted the liability of carrier, the carrier cannot be held liable.


End of Carrier's Liability


Except otherwise provided in the contract the liability of carrier comes to an end in any of the following circumstances.


  • When carries delivers the goods to the owner or consignee or person designated by consigner.
  • When the consigner takes back the goods.
  • When the carrier returns the goods to the consigner stating the reason why the goods cannot be transported because of fundamental changes in then situation.