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interlake, manitoba | This made me think of my cell phone contract.
Three year term, where I am allowed to use so many minutes, and send so many texts per month
If I need to cancel the contract then I no longer get to use the minutes or the texts, and I am immediately responsible for the remaining payments.
Is it possible to structure a corn contract in a similar manner
For a weekly payment of $xxxxx.xx the buyer is allowed to pick up so many bushels per week. (If he goes over then charge him extra per bushel.)
Payment is weekly with a 2%/week late fee.
Deliveries are not permitted during periods when the buyer is not current.
The buyer is responsible for the dollar value of the contract plus late fees regardless of the amount of deliveries that were made.
By the time this hits bankruptcy court the contract will have concluded regardless of the number of bushels actually deliver.
And the producer will have at most one weeks worth of payments at risk.
Edited by DisCypher 1/12/2010 15:27
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Corn sale !!!
