§1Model wording
4.1 Declaration. The Buyer may declare pallets lost in its monthly report. Declared pallets stop accruing rental from the date of declaration.
4.2 Charge. The lost-pallet charge per pallet is set in Schedule A and shall not exceed [the replacement cost shown in Schedule A].
4.3 Reconciliation. Before invoicing any lost-pallet charge not declared by the Buyer, the Owner shall provide a reconciliation showing issues, transfers and returns for the period, by location.
4.4 Recoveries. A pallet charged as lost and later recovered shall be credited at the charge paid, less rental for the period it was missing.
Values in [square brackets] are yours to set. Have counsel review before use; this is not legal advice.
§2Negotiation notes
Pooled-pallet contracts can include issue, transfer, rental, lost-equipment and other fees (see Pallet Enterprise's guide to rental contracts). Lost-equipment charges are where account accuracy matters most; insist on 4.3.
Track your own transfers. A reconciliation is only as good as the data you can check it against.