Drafting a Custody Agreement for Material Assets

April 1, 2025
Posted by: АРОУ
Category: Publications

Responsible storage is critical for any business dealing with goods, equipment, or inventory. A properly drafted custody agreement ensures legal protection, defines clear obligations, and prevents asset loss or misuse.

The Legal and Real Estate Association of Ukraine offers expert drafting of custody agreements tailored to your logistics, manufacturing, or storage needs.

What Is a Custody Agreement

It’s a contract where the custodian agrees to accept, store, and return material assets in proper condition, under specified terms.

Who Needs This Agreement

Manufacturers transferring goods to warehouses
Distributors and retail chains
Logistics and storage companies
Businesses renting storage spaces

What a Proper Custody Agreement Should Include

1. Subject of the Agreement

Description of the property
Quantity, specifications, and condition upon transfer

2. Storage Conditions

Temperature, humidity control
Safety measures: security, video surveillance, fire protection

3. Rights and Obligations

Custodian:

Ensure safekeeping
Refrain from using the assets
Notify owner of risks

Depositor:

Provide complete info about assets
Timely payment (if applicable)
Collect items after storage period

4. Liability

Loss or damage of items
Violation of storage terms
Late return or non-compliance

5. Duration and Termination

Agreed storage period
Conditions for asset return

6. Payment Terms

Cost, deadlines, payment method

7. Force Majeure

Natural disasters, war, criminal acts

8. Dispute Resolution

Negotiation, mediation, or legal proceedings

Why Proper Legal Drafting Matters

Prevents costly disputes
Enhances security of valuable assets
Optimizes warehouse and logistics operations

How We Can Help

Risk and need analysis
Custom custody agreement drafting
Storage site and provider legal review
Consultations on asset protection

Secure Your Property Today

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