Floor Stock Agreement Template

A floor stock agreement is a contract between a manufacturer or supplier and a retailer that allows the retailer to keep a certain amount of inventory on hand, often referred to as “floor stock.” This agreement is commonly used in industries such as automotive, where dealerships have vehicles on their lots that belong to the manufacturer. A floor stock agreement can be beneficial for both parties, as it ensures that the retailer has enough inventory to sell, while the supplier can maintain control over their product.

If you are a retailer who needs to enter into a floor stock agreement with a supplier, it is important to have a template in place. A good floor stock agreement template should include the following elements:

– Identification of the parties involved: This section should clearly identify the supplier and the retailer, including their names, addresses, and any other relevant information.

– Description of the products: The agreement should specify what products the retailer will be keeping in stock, including any specific models or variations.

– Quantity of inventory: The agreement should establish how much inventory the retailer will be allowed to keep on hand, and how it will be replenished.

– Payment terms: The payment terms should be clearly defined, including how and when payments will be made, and any penalties for late payments.

– Duration of the agreement: The agreement should have a clear start and end date, as well as any options for renewal.

– Termination provisions: The agreement should spell out the circumstances under which the agreement can be terminated, and what happens to any remaining floor stock.

– Indemnification and liability: This section should specify how each party will be held responsible for any damages or losses that occur as a result of the agreement.

Using a floor stock agreement template can help ensure that both parties are protected and that the agreement is clear and enforceable. If you need help creating a floor stock agreement, consider consulting with a legal professional or using a template from a reputable source. With the right contract in place, you can build a strong relationship with your supplier and keep your inventory stocked and ready for sale.