# Local Product > Local Product means any item, not including freight or mail, with or without postage affixed. **Term:** Local Product **Last updated:** 2026-07-29 ## Definition ## What Local Product Means in a Contract Local Product is a defined term used to identify a specific category of item moving through a delivery, courier, or logistics arrangement. The core idea is exclusion: the definition carves out freight and mail, leaving behind a residual category of goods that do not fit either classification. This means Local Product typically covers smaller parcels, packages, or items handled outside the formal freight and postal systems. The phrase also clarifies that postage status is irrelevant. Whether or not an item has postage affixed, it can still qualify as Local Product so long as it is not freight or mail. This detail matters because many delivery agreements treat postage as a marker of a different service category, and the drafters of this term wanted to avoid that assumption creating ambiguity. Understanding this term correctly allows parties to apply the right operational rules, pricing structure, and liability framework to the correct type of item, rather than defaulting to broader or mismatched categories found elsewhere in the agreement. ## How Local Product Is Defined or Measured Because Local Product is defined by exclusion rather than by a positive checklist of features, its scope depends heavily on how the contract defines freight and mail elsewhere in the document. If those two terms are drawn narrowly, Local Product becomes a broader catch-all. If freight and mail are drawn broadly, Local Product shrinks to a narrower residual set of items. Contracts often measure or qualify Local Product using practical, everyday indicators, such as: - Size and weight thresholds that separate ordinary parcels from bulk freight shipments. - Delivery channel, distinguishing courier or local delivery routes from postal or freight networks. - Whether the item was processed through a mail sorting system or a freight consolidation process. Because these measurement points are not always spelled out explicitly, parties frequently rely on operational practice or industry norms to interpret the boundary. This is one reason the term benefits from careful drafting, discussed further below. ## Where Local Product Appears in Agreements This term shows up most commonly in delivery, courier, logistics, and distribution agreements where multiple categories of shipped items are handled under different pricing or service terms. It can also appear in supply arrangements where a supplier delivers goods directly rather than through a freight carrier, similar to concepts discussed in guidance on [drafting a product supply agreement](https://www.genieai.co/blog/drafting-a-product-supply-agreement-a-step-by-step-guide). Local Product provisions are particularly relevant in industries such as [transport](https://www.genieai.co/industry/transport) and [retail](https://www.genieai.co/industry/retail), where businesses regularly move items through mixed channels and need contractual clarity on which rules apply to which shipment type. In some cases, the term intersects with broader logistics agreements, including those resembling a [freight forwarding agreement](https://www.genieai.co/en-us/template-type/freight-forwarding-agreement), where freight and non-freight items are handled under separate provisions. It can also surface in service level schedules, pricing annexes, or liability clauses, where different categories of items carry different compensation caps or handling obligations. ## Why the Exact Wording Matters Because Local Product is defined negatively, its precise boundaries depend entirely on how neighboring definitions are drafted. Vague or overlapping definitions of freight or mail can create gaps or double coverage, leaving parties uncertain which pricing schedule, liability limit, or service standard applies to a given item. Ambiguity here can lead to real commercial consequences. A dispute over whether an item was Local Product or freight could affect who bears the cost of loss or damage, what compensation is owed, or which party is responsible for delivery timelines. Precise wording reduces the risk of disagreement and supports consistent operational treatment of shipments. ## Drafting Considerations When drafting or reviewing a Local Product clause, it is important to ensure the definitions of freight and mail are equally clear, since the scope of Local Product depends directly on them. Cross-referencing these terms consistently throughout the agreement helps avoid unintended gaps. Drafters should also consider whether measurable criteria, such as weight, size, or delivery channel, would help reduce interpretive disputes. Where practical, including examples or illustrative lists can make the boundary between categories easier to apply in day-to-day operations. Finally, parties should confirm that liability, pricing, and service standards tied to Local Product align with their operational reality, and that the term is interpreted consistently with the law governing the contract, particularly where mixed shipments or edge cases are common. ## Context ### Relevant circumstances - Sale or purchase of goods - Transfer of items within a supply chain - Commercial lease of properties selling or producing goods ### Relevant sectors - Transport - Retail ## Relevant contract types - [Freight Forwarding Agreement](https://www.genieai.co/en-us/template-type/freight-forwarding-agreement) --- This is the Markdown representation of [https://www.genieai.co/en-us/define/local-product](https://www.genieai.co/en-us/define/local-product), provided for AI agents and crawlers. The HTML page is canonical. See [/llms.txt](https://www.genieai.co/llms.txt) for the full content map.