Liability of contractor for breach

§ 6434. Liability of contractor for breach (a) The Postmaster General may make deductions from the compensation of contractors for failure to perform service according to contracts for the transportation of the mail, and he may impose fines upon them for other delinquencies. He may deduct the price of the trip in all cases where the trip is not performed and not exceeding three times the price if the failure is occasioned by the fault of the contractor or carrier. The Postmaster General may change or remit deductions or fines. (b) Contractors are also answerable in damages to the United States for the proper care and transportation of the mail. They are accountable to the United States for loss of or damage to the mail or any part of it due to the failure of any of the contractor’s officers, agents, or employees to exercise due care in the custody, handling, or transportation thereof.