Legal Help Desk

What does that mean? Your new agreements explained

Set out below is an explanation of a few of the clauses in the new standard self storage agreement for New Zealand.

QWhat does ‘The Storage Fee reflects the allocation of risk set out above’ mean?

AThis is found in the Schedule, in bold under the Main Points. The reason this was included is to ensure that the storer understands that the storage fee agreed with them has been set with them taking responsibility for the items listed. In the Main Points, it is made clear that: l the goods are stored at the storer’s risk – and the facility owner is not responsible for anything that happens to them (such as loss, theft, damage etc); l the goods are not insured by the facility owner – this is the storer’s responsibility; and l the storer is responsible for all damage caused by them or anybody else they let into the facility.

So, the risk of loss or damage to the goods, and also the responsibility for damage to the facility caused by the storer, is allocated to the storer. Because of this, the storage fee is lower than it would be if the facility owner took on the risks set out above. Q What do the FO Liability clauses mean?

l Clause 10 – Consumer

Guarantees Act excluded for

business storers: Under this clause, if a storer is storing for a business purpose (e.g. storing office files), the protections given by the Consumer Guarantees

Act 1993 (CGA) do not apply to them. The CGA, as you will be aware, gives consumers various protections when they are purchasing goods or services (see below for further information). The CGA can also apply to business to business relationships but businesses can agree that the CGA does not apply. Contracting out of the CGA for businesses is common in New

Zealand.

l Clause 11 – Liability and Risk: This clause allocates risk between the parties – setting out what each party is and is not responsible for.

In summary: • An individual who is storing for their own personal purposes (not business purposes) has the benefit of the protections of the CGA. The protections include the right that services will be provided with reasonable care and skill. You can find out more information on the CGA in section 7 of the

CSA Guidelines. • Outside of the mandatory

CGA protections, the storer is responsible for any loss or damage to goods stored – this is broad, and includes loss or damage caused by things such as flooding or fire. One exception is that the facility owner is liable if it has acted negligently (has not acted with reasonable care).

If the facility owner has acted negligently, the facility owner will be responsible for anything caused by its negligence.

l Clause 12 – Delay in exercising rights: This clause just means that a facility owner doesn’t need to take legal action right away – if they delay for any reason, they can still take legal action at a later date.

Disclaimer: The information contained in these answers is of a general nature and is not intended as legal advice. It is important that you seek legal advice that is specific to your circumstances. Please refer to the SSAA’s website for more information on the SSAA’s Legal Help Desk.

Updated letter templates for New Zealand Members

The SSAA have updated all letter templates for New Zealand Members and are available for download in the member portal. Update your templates today!

new standard storage agreement* now available!

*only available to financial members

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