A contract of carriage establishes the airline's rules when it comes to the sale and purchase of tickets. It dictates the amount of time a ticket the airline sells is good for following its sale, conditions for refunds and cancellations, applicable taxes and fees and the currencies customers may use to pay for tickets. This section of the contract also deals with reservations, including how long a customer may hold a reservation before the airline requires payment and the terms and conditions of seat selection.
The contract of carriage also lays out an airline's baggage rules. In addition to outlining limits for carry-on and checked baggage, this section also details the airline's responsibility for customers' bags in the event of a loss. The contract sets a maximum dollar amount for which a customer may hold the airline accountable and the procedure the airline will follow if it does happen to lose a bag. The contract of carriage also deals with the airline's liability in the event of a crash, fatal or otherwise, as well as the time frame following any incident during which legal proceedings can take place.
Another important set of rules an airline's contract of carriage outlines is the standard of conduct its passengers must maintain. It sets forth circumstances under which passengers may not be allowed on board--visible intoxication is a typical reason--and also general rules for behavior once the plane is in the air. These range from regulations on smoking on-board and wearing seat belts to definitions of appropriate interactions between passengers and flight crew.
