Assignment, Indemnification and Warehouse Lease Agreements

building handshake In our last RealDealDocs blog entry, we discussed personal guarantees, fee agreements, and letters of intent.  This week, we will cover three other types of agreements: assignment agreements, indemnification agreements, and warehouse lease agreements.   To review, an agreement can be defined as “a negotiated and usually legally enforceable understanding between two or more legally competent parties. Although a binding contract can (and often does) result from an agreement, an agreement typically documents the give-and-take of a negotiated settlement and a contract specifies the minimum acceptable standard of performance.”

Assignment Agreement

An assignment agreement is a document used to assign rights and responsibilities to a party. If a party (”assignor”) is overwhelmed with work, and cannot adequately fill their responsibilities to an individual or company (”obligor”), they can assign them to a third party (”assignee”). These documents may include debt assignment as well. The agreement details the rights and obligations for each party, and the terms under which the agreement was made. It may also include the consent and release by the parties, any changes made to the obligations of the assigning party, governing law, information about the scope of authority the new party receives, and other issues. You might use an assignment agreement if you were hired to provide a service to a business, such as web design, and due to extenuating circumstances you were unable to perform the obligations you assumed. You would perhaps choose to hire a subcontractor to fulfill your responsibilities, upon consent of the obligated party.

Indemnification Agreement

An indemnification agreement is also known as a ”hold harmless agreement. ” This is a document put in use to protect an individual or business from legal action. In the agreement, a party agrees to pay (”indemnitor”) for any liability incurred by a second party (”the indemintee”).   You may use this type of document when you decide to let someone use your company’s vehicle, and you want to protect yourself from a lawsuit should they cause damage to another’s property. This agreement is often used for financial responsibilities.   Indemnity means to hold someone harmless for an action. By using this agreement, a party is not responsible for incidents or damages they did not cause. The document can hold a party free from legal action, fees, claims and losses. They are often used in insurance contexts. Some parties may be considered high risk, and thus an indemnity agreement holds another party harmless. When renting an apartment, a renter may sign an agreement to not hold their landlord legally responsible in the event they were injured on the landlord’s property. There may be additional clauses about negligence, state of governing law, and the scope of the activity an agreement covers.

Warehouse Lease Agreement

A warehouse lease agreement is used when an individual or company (”Tenant”) is renting space in a warehouse from another individual or company (”Landlord”) to house product, materials, or for any other use. For instance, an online shoe store may rent space in a warehouse to stock their inventory and keep it safe.   An agreement will include the length of the lease, the rent amount, payment due dates and late charges for rent. Additionally, the lease agreement will specify where payment is to be paid, and the amount of the security deposit, should one be requested. The document will cover who is responsible for the utilities of the space, maintenance, repair or improvements, and damage fees if damage is incurred.   A lease typically indicates the party responsible for the lock and security of the property, as well as pest control. Although lease agreements may differ in how a renewal of the lease shall occur, proper documents include this information. When signing the document, the tenant will indicate in the contract that they are aware of and accept the present condition of the premises. In space occupied by several individuals or companies, a landlord may include terms regarding noise level, authorized vehicles, and what constitutes as acceptable use of the space. A warehouse lease agreement may also include eviction clauses and other repercussions, should either party violate the agreement.     Drafting an agreement from scratch can be a time consuming and daunting task – plus, without input from a qualified attorney, you may be poised to enter into an arrangement this not legally sound or in your best interest. Fortunately, RealDealDocs allows you access to thousands of agreements that have already been used in a myriad of different industries.