The Warehousing and Distribution Agreement is essential for businesses operating in Canada that require professional storage and distribution services for their products. This agreement is particularly crucial given Canada's vast geography and the complexities of inter-provincial and international trade. It should be used when a company needs to outsource its warehousing and distribution operations to a third-party provider, establishing clear terms for storage conditions, handling procedures, distribution requirements, and service levels. The agreement needs to comply with federal and provincial regulations regarding transportation, storage, safety, and where applicable, specific industry requirements such as cold chain management or dangerous goods handling. It typically includes detailed specifications for inventory management, reporting requirements, insurance obligations, and risk allocation between parties.
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1. Parties: Identification of the warehouse operator and the client company
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Key terms used throughout the agreement
4. Appointment and Scope of Services: Formal appointment of warehouse operator and overview of services
5. Term and Termination: Duration of agreement and termination provisions
6. Warehousing Services: Detailed obligations regarding storage, handling, and inventory management
7. Distribution Services: Requirements for order fulfillment, shipping, and delivery
8. Service Levels: Performance metrics and standards for both warehousing and distribution
9. Fees and Payment: Pricing structure, payment terms, and invoicing procedures
10. Title and Risk: Ownership of goods and risk allocation during storage and transit
11. Insurance: Required insurance coverage for both parties
12. Liability and Indemnification: Limitation of liability and indemnification obligations
13. Confidentiality: Protection of confidential information
14. Force Majeure: Provisions for unforeseen circumstances affecting performance
15. Governing Law and Dispute Resolution: Applicable law and dispute resolution procedures
1. International Services: Include when services involve cross-border storage or distribution
2. Dangerous Goods Handling: Include when handling hazardous materials
3. Temperature-Controlled Storage: Include for cold storage or temperature-sensitive goods
4. Value-Added Services: Include when offering additional services like packaging, labeling, or assembly
5. IT Systems Integration: Include when requiring specific software or system integration
6. Environmental Compliance: Include when handling environmentally sensitive materials
7. Quality Control Procedures: Include for industries with specific quality requirements
8. Security Requirements: Include for high-value or sensitive goods
1. Schedule A - Service Specifications: Detailed description of warehousing and distribution services
2. Schedule B - Service Level Agreement: Specific performance metrics and KPIs
3. Schedule C - Fee Schedule: Detailed pricing structure and additional charges
4. Schedule D - Warehouse Locations: List of approved warehouse facilities and specifications
5. Schedule E - Operating Procedures: Detailed operational processes and requirements
6. Schedule F - Insurance Requirements: Specific insurance coverage requirements and limits
7. Appendix 1 - Reporting Requirements: Templates and specifications for required reports
8. Appendix 2 - Contact Information: Key personnel and emergency contacts
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