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Publication date: 21.03.2024
I am studying in the third year of the State University of Economics and Technology.I specialize in contractual, economic and corporate law, in particular, I provide consultations and write articles.
Taking into account the fact that our country has a fairly powerful agricultural potential, contracts concluded in order to carry out agricultural activities are of great importance. One of such contracts is a contract for the contracting of agricultural products, under which the producer undertakes to transfer the produced products to the other party, the contractor, within the period and in the quantity and assortment determined by the parties when concluding the contract, and the contractor, in turn, is obliged to accept and pay for the products, as well as to assist the manufacturer in production (Article 272 of the Civil Code). This contract is quite actively used in the field of state procurement of agricultural products. Based on the above definition of the contract, it can be stated that its main parties are the manufacturer (FOP, legal entity) specializing in the production of agricultural products and the customer (state body, state enterprise, etc.).
Analysis of the features of the contract for the contracting of agricultural products:
The main features of the contract are that it is concluded with regard to products that do not yet exist at the time of conclusion, because if we proceed from the definition of the word contracting, then this is an obligation to manufacture, supply products, provide guarantees for their purchase in the future. Another characteristic feature of this contract is that the production and delivery of products is carried out by the manufacturer under the contract. Of course, it should be taken into account that the delivery itself is not carried out immediately after the conclusion of the contract, but after some long time. As for the right signs, they can include: consensuality, bilaterality and retribution. The subject of the contract can be exclusively agricultural products, that is, those that are subject to cultivation, production, breeding by the producer himself and can be in a raw state or after primary processing. Essential conditions are of key importance for any contract, and the legislation clearly establishes their list, namely:
• Product type, its range. It is also necessary to specify the permissible content of harmful substances depending on the type of product.
• Quantitative characteristics of the products to be accepted by the contractor.
• It is also necessary to determine both the price per product unit and the total amount of the contract.
• The procedure and conditions according to which the product will be delivered, as well as the term of its delivery-acceptance.
• Responsibilities of the procurer, i.e. the contractor, regarding assistance in the production of products and their transportation.
• Liability of the parties for non-fulfillment of contractual obligations and other conditions
In addition to the general provisions, it is still worth noting the risks that exist when concluding this type of contract. Since the responsibility for production, cultivation, and production rests with the manufacturer, such force majeure circumstances as floods, storms and other weather conditions, military actions, epidemics - all this will create obstacles to the fulfillment of the terms of the concluded contract. Therefore, it is necessary to specify the list of force majeure circumstances that will exempt from responsibility for non-fulfillment of contractual obligations. The legislation also establishes specifics regarding the fulfillment of the terms of the contract, and more specifically, this applies to the manufacturer, who must notify the contractor in advance (15 days in advance) about the start of procurement of products, as well as about the quantity and terms in which it will be delivered. For convenience, the parties should make a schedule for the delivery of the subject of the contract. The main obligation of the contractor is to accept all products in accordance with the conditions stipulated in the contract. Acceptance can be carried out both directly at the manufacturer and by delivering the products to the contractor. In any case, all specifics regarding acceptance should be noted in the contract.
Liability of the parties for failure to fulfill the terms of the contract:
The types of liability that can be applied to a party that does not fulfill its contractual obligations under the contract for contracting agricultural products are: penalty (the amount is established by the contract or by law) and compensation for damages. In Art. 274 of the Civil Code establishes cases in which one or another of the above-mentioned types of liability can be applied. For example, if the products were not delivered in accordance with the terms established in the contract, the manufacturer will pay a penalty, the amount of which may be set by the parties when concluding the contract, and in some cases provided for by law. If the conditions are violated on the part of the contractor, namely in terms of accepting the products, then he will pay the other party such a penalty as a fine, the amount of which is 5% of the value of the products that he did not accept and compensate for the losses. If the contractor's actions have led to product damage, the full cost of such products is subject to compensation. In that case, if the contractor suffered losses due to untimely preparation for delivery and acceptance of products and he was not warned about this by the other party, then such losses will be compensated by the manufacturer.
Lawyer's consultation in concluding contracts:
The services of a lawyer may be needed at any stage of concluding a contract. Starting with the development of the project, the lawyer will conduct a legal analysis of the situation, assess the risks so that the content of the contract satisfies the requirements of the parties and does not put them in a disadvantageous position. If we are talking about bringing to justice the counterparty who does not fulfill the terms of the contract, the legal opinion of a lawyer will help to effectively collect a penalty or compensate for the damages.
