
5 minute read
Dear Legal Help Desk
QThe new standard agreement doesn’t seem to cater for two storer’s information but makes reference to Storer(s) and I/We in the sign-up areas.
A(Australian Members):
When signing up two storers, we recommend writing both storers’ details in the Storer Details and Contact Information sections. This is to ensure the agreement is legally binding on both storers.
It is not required for both owners of a jointly owned vehicle to sign up as co-storers of a storage agreement, however, we recommend signing both owners up when possible. Having two storers liable for storage payments generally reduces the chances of default.
A(New Zealand Members):
The answer for New Zealand members is the same as for Australian members above. Signing up both storers will also ensure that both storers have authorised the Facility Owner (FO) to sell and dispose of the goods in the event of a default under the Agreement.
QWe are currently considering Storman Contactless Move In. After reviewing their process, I found there is no place for the FO to sign the agreement.
Storman tells me there is no provision for the FO and it’s not required. The reason it’s not required as the FO is in agreement due to giving the customer access to the branded signup portal online (or iPad/tablet in-store).
Could you please confirm there is no need for the FO to sign an agreement anymore, if we use the Storman Move In/online agreement.
A(Australian Members):
Storman is correct in saying that there is no requirement for the FO to sign the Agreement. To form a legally binding contract, the Facility must make an ‘offer’, which the Storer then ‘accepts’. By providing the potential Storer with access to the portal and a link to complete the Agreement, the Facility is making an offer. When the Storer signs the Agreement, they are accepting the terms of the offer, and a binding contract is formed between the parties.
If the Facility chooses to continue with its current sign-up process rather than using Storman, the Facility should still sign all Agreements to limit any risk to the Facility of a Storer challenging the validity of the Agreement.
A(New Zealand Members):
The position in New Zealand is the same as for Australian members.
QCan a Facility Owner refuse storage to a new storer if they do not accept electronic correspondence? Can an FO refuse storage to a new storer if they do not consent to a search of StorerCheck or other applicable credit reporting agency?
A(Australian Members):
The Facility can refuse its storage services if the reasons are not improper.
Pursuant to anti-discrimination laws, businesses cannot refuse service based on certain attributes such as age and disability. Older people and those with disabilities may be less likely to consent to electronic correspondence
if they do not have the means to receive them. However, many businesses have since transitioned to communicating solely by electronic methods. As this practice is quite common nowadays, we believe it is reasonable for the Facility to refuse storage to a new Storer who does not consent to receiving electronic correspondence.
The Facility may also refuse storage if a Storer does not consent to a credit check or a search of StorerCheck. The Facility may prefer that all new Storers are searched against the StorerCheck database to reduce the likelihood of signing up a new Storer who, for example, has a history of being in default, missing payments, or abandoning goods. Accordingly, refusing storage to a new Storer who does not consent to a credit check helps to avoid a risk to the Facility and is not for an improper reason.
Though we have advised that the Facility can refuse storage in the above situations, the Facility should ensure that storage is not refused on any other grounds.
A(New Zealand Members):
The position in New Zealand is the same as for Australian members.
QAs schools don’t have an ‘ACN’ only an ABN what is best practice for the name on the Agreement? A (Australian Members):
The approach that the Facility should take will depend on what type of entity the school is. Schools can be incorporated entities (such as a company or incorporated association) or they can be state government entities. In each case the school can enter into an agreement with the Facility.
If the school is a company, you should follow the usual steps for signing up a company in section 4.1(f) of the CSA Guidelines, and include the company’s ACN. If the school is an incorporated association, you should insert the association’s name and ABN. The agreement will need to be signed by two committee members.
Public schools are government entities which have school councils that have the power to enter into agreements on behalf of the school. A school council can delegate this power to the school council president, who may then sign the agreement on its behalf. In these cases, you should include the name of the school and its ABN. You will need to ensure that the person signing the agreement is the president and has the authority to sign on behalf of the school, much in the same way you would for companies.
A(New Zealand Members):
In New Zealand, we do not use ACN numbers. In the new Standard Self Storage Agreement that we are currently developing, there will be a new ‘NZBN’ field for a Storer to fill in. An NZBN is a globally unique identifier available to all types of New Zealand businesses, including sole traders, partnerships, limited liability companies and the public sector. The NZBN Register is an easily searchable register that enables a FO to verify details provided by a potential Storer. All companies registered in New Zealand have an NZBN, and other entities can register for an NZBN online. We recommend that this field be completed by Storers where possible to provide you with another layer of identification.
QDo we need to get a new agreement signed when a storer now wishes to have insurance?
A(Australian Members):
You do not need to enter into a new agreement with the Storer now that they wish to insure their goods. It will be sufficient to make a note on the Storer’s file. You should include the policy number/ insurance agreement number or the name of the insurance company as well as the date that the policy commenced.
A(New Zealand Members):
The position in New Zealand is the same as for Australian members. l
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.
