Key Terms Of A Warehousing Contract

Small businesses find it economical to lease the required space in a warehouse rather than set up one of its own, or take an entire warehouse on lease. These spaces can be leased both in government or public warehouses. The operator of the warehouse may operate the warehouse on its own or use a third party logistics partner. In the previous article in the series, we looked at the various warehousing models in place in India. In this article we look into the key commercial terms of a warehouse agreement between the operator and user of a warehouse.

Storage space: Leased space in a warehouse is typically calculated in square meters. The operators may require that the user leases a minimum area in the warehouse. Users may intend to use this space for storing their own goods. They may also, subject to the appropriate agreement with the operator, use the space to store goods of third party users under a separate agreement. Under this model, the user ('primary