Disputes over supply contracts are a long and complex process requiring the presence of a specialist. There are no exceptions to contracting agreements.
The concept and general characteristics of the contract of contract
A contract is an agreement between a producer of agricultural products and a harvester. Such transactions are applicable only in the agricultural sector.
In Soviet times, the term had this meaning: contracting is a system of agreements between collective farms or state farms and the state. This is a government procurement scheme for agricultural products, which allows setting prices and regulating its value.
A contract of contract is a model purchase and sale agreement that differs only in the segment of activity, it applies only in the agricultural sector. Currently, such transactions are a kind of purchase and sale contracts. By agreement, the manufacturer (manufacturer) agrees to ship to the procurer (contractor) the agreed volume of agricultural products.
The legal affiliation of the contract may be:
• mutual;
• onerous;
• consensual.
Agricultural food producers depend not only on weather conditions, livestock diseases, pests, but also on factors such as contracting of agricultural products. This makes agrarians and farmers weak players in contractual relationships.
Through agreements, the state has the ability to influence the quantity and quality of agricultural products produced by stimulating demand and controlling prices.
The basis for regulating the relationship between manufacturers and purchasers is contracting. This leads to an increase in the level of protection of the manufacturer of agricultural products.
Such transactions are very important for farmers. Thus, they receive advance payments, which ensure stable production.
Contracting Parties
The parties to the model contracting contract are the producer and procurer of agricultural products.
A manufacturer is a subject of civil law (including a commercial organization or a farmer-entrepreneur). It produces agricultural products.
A procurer is a business entity. He acquires agricultural products for sale or processing in further production. In no case may the contractor purchase food for personal consumption.
Features of the contract of contracting
The terms of the contract are as follows:
1. The manufacturer is protected by the laws of the Russian Federation, imposing an increased measure of responsibility on the procurer.
2. The activities of the contractor relate to risky types of transactions associated with dependence on weather conditions.
According to Article 268 of the SCRF, such an agreement must provide:
• Assortment, quantity, quality of products, terms, delivery conditions (usually pickup), place of acceptance of goods, price, terms and sizes of advance and actual payments.
• Obligations to provide coordinated assistance in organizing the production and transportation of food to the place of acceptance.
• Responsibility of the parties in case of improper performance of the obligations established by the agreement.
The contract of contracting can be concluded only in simple written form. Its main focus is the increased protection of the food producer.When determining the subject of the contract, it is customary to use the term “agricultural products” rather than “goods”.
Subject of contract agreement
Contracting agreements have a number of features:
• The object of the concluded contract is not yet grown agricultural products. It can be vegetables, cereals, livestock or poultry.
• The production of products (arable farming, sowing, harvesting) is influenced by adverse factors that shift the delivery time of the finished product (hail, landslides, floods, epidemics among animals).
It follows that the agrarian is obliged to notify the contractor about the beginning of the procurement process within 15 days. The parties must agree on the timing, volume and calendar schedule for the supply of products.
Rights and obligations of the parties
The contracting of agricultural products implies the implementation of all clauses of the agreement. These include delivery times, their volume and assortment.
The procurer undertakes to accept the food produced on his order from the manufacturer and remove it from the place of distribution.
The contractor does not have the right to refuse to accept quality finished products that meet the conditions specified in the agreement.
The manufacturer undertakes to transfer the goods in the allotted time, while it will be of appropriate quality and assortment.
The manufacturer shall compensate the forwarder for forfeit in cases of untimely transfer of products. The size of the penalty is stipulated by the contract.
The manufacturer compensates the contractor for losses if the buyer was not notified about the change in the timing of the transfer of agricultural products.
By agreement of the parties, you can include in the contract a clause on the return by the procurer of waste from production to the manufacturer in cases where food is purchased for further processing.
Responsibility of the parties under a contract agreement
The manufacturer is responsible and indemnifies the procurer in cases where his fault has been proved. The absence of guilt is proved by the agrarian or the farmer. If it is not proved or force majeure interfered with the production (drought, hail, flood, etc.), the manufacturer does not indemnify the contractor.
If the procurer at the time of transfer of the product detects a defect and indicates it to the manufacturer, the contractor has the right to make demands in accordance with Article 475 of the Civil Code.
The buyer bears an increased degree of responsibility. If the payment terms for products are violated, fines or penalties are imposed on the procurer.
So, contracting is a necessary measure to regulate a weak agricultural sector. It is designed to minimize risks in the production and sale of such products. The contract of contracting supports agrarians in cases of force majeure, which entailed the death of the crop.