Tooling Bailment Agreement | USA
Place tooling and equipment with a supplier as bailee under this Tooling Bailment Agreement to enable them to produce products for your business. For use in the USA.
- The bailment agreement is ancillary to a supply agreement between the parties, under which the supplier will produce products for the bailor.
- The supplier takes possession of the tooling as bailee at will, for the sole purpose of producing the products for the bailor.
- The bailor retains ownership of the tooling at all times.
- The bailee will not allow any liens or encumbrances to attach to the tooling. The template includes a Lender Acknowledgement and Consent form, which is to be signed by any secured lenders of the bailee acknowledging that the tooling and equipment belong to the bailor.
- The bailee must keep the tooling in good operating condition at its own expense and is liable for loss or damage to the tooling as long as it remains in the bailee's possession.
- The bailor has a right to injunctive relief if the bailee is in breach of the agreement and the breach threatens the bailor's business operations.
- This Bailment Agreement template is intended for use within the United States.
Last Updated: 30-June-2021