The Sidetrack contract is a kind of insurance contract. Other types of insurance contracts are leases, elevator maintenance contracts, the compensation obligations of one municipality and the assumption by another party of an illegal act for the payment of rights to a third party. Parties to an insurance contract agree to assume certain debts, even if the protection against these debts is contained in the “no damages” provision of a commercial contract. An insured contract invalidates such a provision. A sidetrack is a railway line that forks off the main line of a railway. It is different from a siding that is a stretch parallel to the main track and used for parking cars or passing trains on the same track. A sidetrack, on the other hand, “goes somewhere.” Sidetracks are generally operated on private land, so companies that ship and receive rail shipments can make deliveries directly to their property rather than to a depot. In particular, the Sidetrack agreement is a contractual clause that protects the company from liability for damage that could occur on the land on which the line is located. The company will, for example, be more legally receptive in case of property damage. When a railway builds a secondary track on a landowner`s land, the railway and the landowner generally enter into a Sidetrack contract — a contract that determines each party`s responsibility for the line.
This agreement plays a key role in determining liability in the event of an accident on the secondary line. © 2020 Miller Thomson LLP. This publication can be reproduced and broadcast in its entirety, unless no changes have been made to the form or content. Any other form of reproduction or dissemination is subject to Miller Thomson LLP`s prior written consent, which may be requested by contact with email@example.com. The contractual provision of liability in liability insurance protects the insured from certain debts incurred in a contract with compensation provisions. For example, a landscaping company hired by the landowner signs a contract stating that the landowner and the railway company will be “unscathed” for injuries that occur on the annex site. However, the landscaping company`s insurance policy contains contractual liability provisions that exclude these obligations for policyholders and in fact terminate the “disempower” contract. The directive restores liability to the owner of the land and the railway company, as would be the case in the absence of a contract with the landscaping company. A subsidiary decision overturns the contractual liability provision and strengthens the “no damages” provision. A secondary track agreement is an agreement between a railway company and a landowner whose land is used as part of the company`s railway.