Storage Agreement

What is a storage agreement?

A storage agreement is an agreement under which one party will grant permission for another party to store goods in their property, in exchange for a fee (rent).

What is the difference between a storage agreement and a business lease agreement?

A storage agreement will only grant permission for somebody to use an area or space in a property for the purpose of storing goods. A tenant under a business lease agreement will have permission to occupy a property as a tenant and will have particular rights and responsibilities in connection with the tenancy, including specific notice periods and processes that apply to eviction.

Is it mandatory to have a storage agreement?

No. It is possible to grant permission to use a space for storage verbally or informally. However, it is helpful to have a written agreement so that each party has a clear understanding of their rights and responsibilities.

What are the prerequisites of a storage agreement?

Before a party enters into a storage agreement, they should:

• check the terms of their insurance – to ensure that granting permission for a third party to use the space does not impact their policy
• ensure that they have the legal authority to grant the lease - i.e. they own or have the appropriate legal interest/permission to let the property
• check whether they need permission from any other third parties - e.g a mortgage lender

Who can enter into a storage agreement?

The parties may both be individuals. In this case, they should be over 18 and have full legal capacity. Legal capacity refers to a situation where a person has the ability to understand and make legal decisions for themselves.

The parties may also be corporate entities (such as a company or a LLP).

What can be the duration of a storage agreement?

The storage agreement can:

• remain in place indefinitely (and may be terminated at any time by providing a specified amount of written notice).
• remain in place for a fixed period. After this period elapses, the agreement will end automatically.

What must be done after the storage agreement has been signed?

After the document has been signed, each party should retain a copy containing the signature of each party.

The agreement is not reviewed by a lawyer to ensure that the legal content applies to the personal situation of the parties. In order to review the particulars of the agreement, the parties can instruct a lawyer. It will be necessary to consult with a lawyer who is regulated by an approved regulator in the legal services sector. It is possible to search for a lawyer using the Law Society find a solicitor page in: England and Wales, Northern Ireland or Scotland.

What happens if the storage agreement is not adhered to?

If one party breaches the terms of an agreement the other party may wish to:

• send a formal written warning to the other party
• terminate the agreement
• consider sending a letter before court proceedings
• start a court claim

What goods should not be stored under a storage agreement?

The following goods should not be stored under a storage agreement:

• perishable goods
• weapons, firearms, ammunition or explosives
• illegal substances, items and goods or any other items which have been obtained illegally
• any flammable or combustible items
• toxic waste
• any goods or items which emit fumes or odours

What must a storage agreement contain?

A storage agreement should:

• Identify the parties – the party storing the goods and the party that owns the space
• Identify the property – the address and any title numbers
• Define the period of the agreement – how long it will last
• Specify the terms of use - how the space may be used, including any safety and security restrictions
• Define all payments and charges – how and when the relevant party must make their payments in exchange for using the space

What laws apply to a storage agreement?

This is not a business lease or tenancy agreement.

The contract is a simple licence and is governed by the general principles of contractual law.

Where the business that owns the storage space is based in England and Wales or Northern Ireland, rights regarding third parties are also addressed in the Contracts (Rights of Third Parties) Act 1999.

Both parties should also be aware of the provisions of the Unfair Contract Terms Act 1977.

Help from a lawyer

You can choose to consult a lawyer if you need help.

The lawyer can answer your questions or help you through the process. You will be offered this option when you complete the document.

How to modify the template?

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.