LEGAL

Uncomplicated endings:

Termination of agreements explained.

The SSAA Legal Help Desk has been fielding a growing number of enquiries about terminating agreements so we've asked the team at Hunt & Hunt to step through the process. By Emily Clapp, Lawyer, Alexandra Culshaw, Lawyer and Tony Ratunic, Managing Principal.

Depending on the circumstances, the SSAA Agreements entitle a facility to terminate the contractual relationship, either with or without notice. At the beginning of a facility’s relationship with a new storer, termination may not be at the forefront of either party’s mind.

However, over time circumstances change and may ultimately reach a point where a Facility wants or needs to terminate the relationship with a storer. This article provides a brief overview of termination under the current SSAA Agreements, but if in doubt, always refer to the CSA Guidelines or contact the Legal

Help Desk.

When can the facility immediately terminate an Agreement?

The SSAA termination clauses in the current SSAA Agreements allow a facility to immediately terminate the relationship with the storer if specific circumstances arise. A facility can terminate an Agreement without notice if: l a storer has stored hazardous, dangerous, illegal, stolen, flammable, explosive, environmentally harmful, perishable, or living goods in the storage space, or any goods that are a risk to anyone else’s property; l a storer engages in illegal activity or breaches any laws related to the use of the storage space; l a storer is abusive, threatening or aggressive towards facility staff or other Storers; and/or l the facility has discovered that no goods are stored in the storage space.

In these circumstances, the facility should make and keep a detailed file note recording events as they occurred and reasons for termination, as it may be useful to rely on these later if the storer challenges the termination. It may also be prudent for the facility to attempt to resolve any issues with storers before electing to terminate.

When does a facility need to give notice of termination?

If the above circumstances do not apply, a facility can still terminate an Agreement with or without reason once the Initial Fixed Period has expired. If the facility elects to terminate the Agreement following the Initial Fixed Period, it must give the storer seven days’ notice (known as the Termination Notice Period). The storer can also terminate the Agreement with or without reason following the expiration of the Initial Fixed Period so long as they have complied with the Termination Notice Period. The facility should set the Initial Fixed Period and Termination Notice Period on signing up a new storer. For example, an Initial Fixed Period may be set from the 1st of February 2022 to the 1st of March 2022, and parties are required to give seven days written notice of termination after the end date of the 1st of March. These mechanisms appear under the Schedule of all SSAA Agreements and are often missed during the sign-up process. If this section is not complete, neither the facility nor the storer has an express right to terminate under the Agreement, leading to complications when it becomes necessary to end the contractual relationship. It is recommended staff are aware of the importance of setting the Initial Fixed Period to avoid any difficulties terminating down the line. Emily Clapp Lawyer

Alexandra Culshaw Lawyer

Tony Raunic Managing Principal

Some key reminders

The SSAA Agreements provide a simple and effective procedure to terminate the relationship with a Storer. Here are some key takeaway points: l Although it’s challenging to think about the end of a relationship when you’re at the beginning, the facility must ensure the Initial

Fixed Period and Termination Notice Period mechanisms are correctly filled out during the sign-up process; l Ensure that all Agreements have been updated to the most recent version available from the SSAA. This ensures consistency across your termination process and provides the best protection against Storer claims or disputes; and l Refer to the resources available on the

Members’ Portal for termination-related queries. The CSA Guidelines, template letters, and access to our Legal Help Desk are just clicks away.

“The SSAA Agreements provide a simple and effective procedure to terminate the relationship with a Storer.

After the decision to terminate has been made, a facility must give notice in writing and send the notice to the storer’s email or mobile or their postal address if they have not consented to receive electronic notifications. We recommend using the template letter (Form 1L) to terminate the Agreement, which is available on the SSAA Members’ Portal.

What if the storer is in arrears?

Understandably, facilities often seek advice on terminating relationships with Storers who are regularly overdue in their payments. If a storer is in arrears, the facility should first contact the storer to attempt to resolve the issue. However, if this is not possible, instead of terminating, the facility should follow the default procedure under Chapter 23 of the CSA Guidelines and use the default template letters available on the Members’ Portal. l

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For a confidential discussion regarding your facility/facilities, call Matt Walsh

Highway Frontage Real Estate 0411 880 054 | 1300 661 950

L1. 146 Chapel St, St Kilda VIC 3182

mwalsh@highwayfrontage.com.au www.selfstoragerealestate.com.au

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