Final answer:
Common carriers are liable for cargo damage, while contract carriers are only responsible as stated in the contract.
Step-by-step explanation:
A trucking company can act as a common carrier or a contract carrier. As a common carrier, the company is liable for any cargo damage, unless it can prove that it was not negligent. On the other hand, a contract carrier is only responsible for cargo damage as specified in the contract. Therefore, in the given scenario, the common carrier, Claus Inc., would be liable for the cargo damage, while the contract carrier, Nichols Inc., would only be accountable if the damage was outlined in its contract.