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Pallet Contract Common Redlines

Common contract clauses to negotiate during pallet supplier agreement. United States Pallets supplies new, recycled, custom, and ISPM-15 heat-treated pallets to commercial buyers in all 50 states, with a 50-pallet minimum order and a written quote target of under 2 business hours.

Resource: Procurement Playbook

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Common contract clauses to negotiate during pallet supplier agreement.

Flatbed truck loaded with pallets for warehouse

Force Majeure

Negotiate broad force majeure (natural disasters, pandemics, lumber supply disruptions) with mutual notification.

Price Escalation

Cap annual price escalator at lumber index +2-3%. Quarterly adjustments tied to Random Lengths Composite Index.

Liability Caps

Negotiate per-incident cap at 2-3x monthly invoice. Annual aggregate cap at 100% annual contract value.

Indemnification

Mutual indemnification for IP, third-party claims. Vendor indemnifies for product liability.

Exit Clauses

Termination for convenience with 90-day notice. Termination for cause (KPI breach, insolvency).

SLA Penalties

On-time delivery SLA: 98%+ target. Penalty: 1% credit per percentage point below 95%.

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