About ICTG Events AGM Quality Officer About Trees Benefits Tree Care Buy & Sell Buyers Sellers Suppliers Links
Sales agreement contracts
When a buyer is found a sales contract should be drawn up with the aid of the sellers solicitor.
A written sale agreement should include as the minimum requirements :-
- Number of trees by species, quality and size.
- Schedules of availability or collection dates, times etc.
- Packing - loose, netted or string tied.
- Price per tree including V.A.T., standing, at roadside, loaded or delivered.
- Payment terms - deposit paid, bankers draft, certified cheque, cash, certified letter of credit and currency (if exporting), bank guarantees.
- Ownership - retention of ownership until payment is made in full.
- Arrangements for resoluion of disputes.
- Force majeure - inability of seller to fulfill obligations due to strike, lockout etc.
N.B. Legal advice is always recommended especially if contract is drawn up by buyer.
Growing contracts
Any contracts to grow trees as an agent or partner in a joint venture should be firstly referred to one's own solicitor and accountant for legal and financial advice. Independent technical advice should also be sought.
Points you should examine :-
- What is the likely market for your product at the end of rotation.
- What is the guarantee of a return on investment.
- What does the contract offer you - guaranteed buy back or conditional buyback.
- Who will manage the plantation and how much will it cost.
- How will the grower be protected in the event of a breakdown of contract.