Warehousing Agreement
A Warehousing Agreement is a legal contract between a goods owner (such as a manufacturer or distributor) and a warehousing provider that outlines the terms under which goods are stored, handled, and managed. It typically covers storage fees, liability, insurance, access, and responsibilities for loss or damage. This agreement is important because it protects both parties, ensures proper handling of inventory, and provides clarity on logistics, risk, and legal accountability.
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Warehousing Agreement - A Contract for Storing and Managing Goods
A Warehousing Agreement is a legal contract between a goods owner (the client) and a warehousing provider. This document is essential because it clearly outlines the terms under which goods are stored, handled, and managed. It protects both parties by defining responsibilities for loss or damage and providing clarity on logistics, risk, and legal accountability.
Scope of Services
This section defines the services the Warehouse Provider will offer, such as receiving, storing, and managing the client's goods. It also specifies the location of the warehouse and any additional services like inventory control or dispatch preparation.
Term and Termination
The agreement sets the duration of the contract, typically for a fixed period. It also outlines the conditions under which the agreement can be terminated, such as by providing a specific amount of written notice or immediately in the case of a material breach. It also states that all outstanding fees must be settled before any goods are released upon termination.
Fees and Charges
This part of the agreement details the costs for the services. It can include storage fees (e.g., per pallet per day) and handling fees. It also specifies the invoicing schedule and payment deadline, providing financial clarity and predictability for both parties.
Insurance and Liability
This is a critical section that clarifies who is responsible for insuring the goods. The client is typically responsible for insuring the goods for their full replacement value, while the Warehouse Provider's liability for loss or damage is limited. The agreement also specifies how the Warehouse Provider's liability is limited, often to a fixed amount per unit or pallet.
Governing Law & Jurisdiction
This is a crucial section for any international agreement. It specifies which country's laws will govern the contract and which courts will have exclusive jurisdiction over any disputes. This provides a clear legal framework and a predictable path for conflict resolution.
Creating a Warehousing Agreement with Bind is the easiest way to manage your goods and logistics. Our tool guides you to create a comprehensive and legally sound document that protects your business. Once the agreement is ready, you can sign it electronically, making the entire process fast and secure.
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