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Corn sale !!!
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John Burns
Posted 1/11/2010 16:23 (#1017109 - in reply to #1017076)
Subject: RE: Corn sale !!!



Pittsburg, Kansas

The getting paid part would be my biggest concern. If he pays for it as he picks it up a guy might be out a load for a bad check but that is survivable. If you have a written contract my concern would be if he claimed bankruptcy the court could compel you to deliver on your contract promise but would pay you according to unsecured creditors which could be pennies on the dollar.

Many years ago there was a local low life that went around to various businesses and dealers and bought some stuff with the "I don't have a check with me but will be back tomorrow" theme. He had been an ok customer to date, was a fairly large and progressive farmer, and was trusted. Well "tomorrow" he declared bankruptcy and all those who sold him stuff that day or maybe week (a set of terra tires, other farming supplies he was going to need for spring, etc.) got to wait several years and got paid what and when the bankruptcy court decided. Local tractor dealer has told me that story several times, as it made an impression on him (he was the one who sold the terra tire set to him).

If there is such a way in a contract, get it so that on any default, you are not obligated to deliver the rest. Don't even know if that is possible concerning bankruptcy.

Counter party risk is a big deal these days. Just ask some investment bankers.

John

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