Uncollected grain?

Discussion in 'Cropping' started by marcot, Jan 8, 2019.

  1. Austin7

    Austin7 Member

    We had a similar issue recently when 500 tons of wheat sold at was a good value last summer was not picked up. The buyer had been reminded in good time and so we felt that we were right to advise them that they were in default of the contract. We had a friendly exchange of views and resolved the issue with suitable recompense for the "carry" and that should not be a mere £1 a ton a month in this default situation. Contracts are legally binding however they are agreed, verbal or otherwise. All that is needed is an offer followed by acceptance and a consideration. Look no further than the case against The Carbolic Smoke Ball Company. or if you are really keen purchase a copy of Chitty on Contracts.
     
  2. benny6910

    benny6910 Member

  3. kiwi pom

    kiwi pom Member

    Location:
    canterbury NZ
    Have you rung them to ask what's going on?
     
  4. betweenthelines

    Location:
    southwest

    Contracts are for a specific month as the buyer bids what he thinks will be an acceptable price at that time. If the buyers had unlimited storage space they'd buy everything for August delivery
     
    ollie989898 likes this.
  5. RFR

    RFR Member

    having the same argument, sold grain for oct collection, still in shed . taken advice from another grain merchant who says as from 1st nov he is out of contract.
     
  6. Farmer-George

    Farmer-George Member

    You want to remind them of that if the advising merchants are late collecting
     
  7. Widgetone

    Widgetone Member

    You must advise the original buyer before selling away otherwise you could be in default. Also, did they apply at anytime in Oct to collect?
     
    Grain Buyer likes this.
  8. David.

    David. Member

    Location:
    J11 M40
    I suspect this will go round in circles, if you inform the buyer to that effect, they are guaranteed to say you are in default. What then, assuming no attempt was made to collect? Which was rather the point of this thread...
     
  9. Brisel

    Brisel Member

    Location:
    Dorset
    Have you spoken to the merchant? You're certainly entitled to a carry. The other merchant is full of manure which will get you in trouble. As before, read the Ts and Cs of your contract regarding late collection. They all use the standard AIC contracts depending on the commodity.
     
  10. Goweresque

    Goweresque Member

    Location:
    North Wilts
    Surely grain contracts must have some end date in them? Otherwise whats to stop a merchant signing a purchase contract and then never picking it up? According to the advice on here they'd never have to pay but the farmer could never sell his grain to anyone else. What would happen if the carry continued to next summer when the store was needed for the next crop?

    IANAL but to my mind if someone contracts to buy something from me and take it by X date, but doesn't do that, and hasn't paid me, then the contract is now not completed and I am entitled to sell the item to someone else AND sue the buyer for failure to uphold their contract.
     
    tullah and David. like this.
  11. Brisel

    Brisel Member

    Location:
    Dorset
  12. We had the same when the end user couldn't pickup the grain in time from us yet managed to empty the grainstores of another farm, and they told me that! Effectively it ended up with them being a month late on the collections after the first months delivery was delayed. I wasn't happy as we started combining and it was a pita in the end, But what can you do - no point falling out as theres all ways tomorrow.;)
     
  13. Goweresque

    Goweresque Member

    Location:
    North Wilts
  14. RFR

    RFR Member

    Constantly spoken to them, even signed a warrant to get them to pay upfront for the wheat but still nothing over a month later. We sell grain to aide cashflow, bits sold throughout the year. what your basically saying is whenever i sell it for it matters not, the merchant can rock up next july and collect it all then just pay me for whatever storage they deem fit. sod off! we get taken for a ride constantly , if grain price drop from sold price then they find fault with the grain moved, if prices rise then fert and costs go up because We are deemed to be getting more. I sold that wheat for october collection because i need the money then, not when it suits them.
     
  15. If you sell for a certain month if that month expires that tonnage not moved is no longer part of the contract and you have no obligation to load it. If the price has fallen they owe you some money just same as when the shoe is on the other foot and you are short of your contract tonnage they buy the tonnage in and pay you the difference if the market is down or you pay them the difference if the market is up.
     
  16. principal skinner

    Location:
    Bedfordshire
    Just remember this when your arguing over 0.1% mc or bushel weight next year. I would ask for £1/t month carry and leave it at that.
     
  17. Brisel

    Brisel Member

    Location:
    Dorset
    I didn't say to let them lift your leg, I said to read the contract you agreed to when you sold it.
     
  18. Brisel

    Brisel Member

    Location:
    Dorset
    That's my understanding of it, according to the paragraphs I quoted. I thought it would be written more in the favour of the merchants since they have plenty of say in the AIC.
     
  19. Verbal contract is as good as a written one.
     
  20. That is bad. Do not trade with them again.
     

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