Contract of responsible storage

In order for a business to function smoothly, it must have access to the necessary material and technical capabilities. It is not necessary that a company must have all such capabilities. They may be owned by other individuals and businesses with whom you have contractual relationships and can use their resources. Let’s talk in more detail about the custody agreement. Our clients often contact us to help us draw up such a document and support its signing. It should be noted that inquiries on the borders of civil and commercial law belong to the specialization of the law firm Prikhodko&Partners.

When is a custody agreement needed?

Such an agreement may be relevant in two cases:

• when an entrepreneur or company seeks to use someone else’s warehouse without a lease agreement;
• when a company wants to make its warehouse available for use.

This agreement is especially appropriate when it comes to the use of a multi-story warehouse without restrictions on footage.

If we analyze the need for such an agreement and the corresponding format of the business relations established by it, then this option is actualized in several specific practical situations at once. For example, you need to purchase a large volume of goods in order to receive an additional discount, which will increase the profitability of the purchase. And there is nowhere to store the goods other than the premises where they are already located at the supplier. If both parties are satisfied with this, you can enter into a custody agreement that will be relevant specifically for such a situation. When you need to ensure the turnover of goods and “updating” expiration dates without the need for a documentary return of the goods, this option will also come in very handy.

What are the essential terms of the contract?

Every contract has certain essential conditions, without which it would be invalid. This also applies to the custody agreement. Let’s take a closer look at what exactly is meant by essential conditions in this case. So, among them:

Storage. It is clear that without indicating the location where the goods will be located, it is impossible to talk about the validity of the contract, since this place must first be indicated.

Storage cost. Specifying the price becomes the factor regulating the financial side of the relationship between the parties.

Product. It is quite clear that the product itself or how it will be identified should be noted.

Product rating. The value of the stored goods must be recorded as one of the essential terms of the contract.

So, if you want to ensure that there are no problems with the validity of the contract, you should qualitatively record all the listed aspects in it.

A contract from scratch or a ready-made template?

This question often arises from our clients. The team of the Prikhodko&Partners law office always emphasizes that the contract should be developed specifically for your interaction and taking into account its features. This will allow you to effectively resolve problematic situations in case of controversial issues. And if the case goes to court, then a correctly drawn up agreement will become a convincing argument for you that the counterparty is violating contractual obligations.

Clients often approach our specialists with a request that we help in concluding an agreement that will truly reflect all the significant details of cooperation. Such a document is an effective tool for real regulation of business relationships. Using a ready-made template turns the contract into a non-working formality that is difficult to refer to in case of disputes.

Summarizing…

Any contractual relationship requires effective regulation. If you want to really regulate business relations with your counterparty in a quality manner, contact professional lawyers who specialize in drafting such agreements and supporting their signing. If in the future problems arise with the observance of your rights under the contract, we are ready to effectively defend your interests in court.

Therefore, please contact us – we will make all the necessary professional efforts to ensure that your relations with counterparties are profitable and safe from a legal point of view.