Pallet contract clauses
Twelve model clauses for a pallet supply agreement, numbered C-01 to C-12. Copy them, change the bracketed values, and have your counsel review the result: this is drafting help, not legal advice. The wording is published under CC BY 4.0.
- C-01 Index escalator clause (BLS wood pallet PPI)Moves the contract price with a published index instead of with price letters, so neither side has to reopen the contract when lumber moves.
- C-02 Reject, credit and pickup clauseTurns the spec's reject criteria into money: who decides a pallet is rejected, how fast, and what the supplier owes.
- C-03 Core return and buyback clauseSets the terms on which the supplier collects your used pallets and what it pays or charges for each.
- C-04 Lost-pallet charge clause (rented or loaned pallets)Limits what you pay when rented or loaned pallets go missing, and requires the owner to show its working.
- C-05 Minimum order and take-or-pay clauseStates what volume the buyer commits to and what happens if it takes less, so the supplier can plan lumber and labour.
- C-06 Lead time and on-time delivery clauseSets how fast the supplier must deliver and what the buyer can do when deliveries are late.
- C-07 Audit and inspection rights clauseLets the buyer check the supplier's production, records and treatment claims, which is the only way to verify an ISPM 15 mark or a grading claim at the source.
- C-08 Heat treatment (ISPM 15) certification clauseMakes the supplier responsible for the ISPM 15 treatment and mark, and for the cost when a shipment is refused because of them.
- C-09 Specification change clauseSets how a spec can change during the contract and how the price follows, so a new receiver requirement doesn't reopen everything.
- C-10 Insurance and indemnity clauseMakes sure the supplier carries insurance and stands behind injuries or damage caused by defective pallets.
- C-11 Termination and transition clauseLets either side exit, and protects the buyer's supply while it moves to a new supplier.
- C-12 Payment terms and invoicing clauseDefines what an invoice must show so rejects, credits and index adjustments can be checked before payment.
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