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Most importantly, any revisions made to a company's contract or confir- 

 mation memorandum should be carefully reviewed by that company's legal 

 counsel. 



When considering how to incorporate some of the provisions of the Sample 

 Grain Purchase Contract or Confirmation Memorandum into a grain company's 

 existing contracts, pick and choose from the provisions to ensure they are compatible 

 with your company's particular producer-customer base, grain merchandising 

 strategies and relevant state law. 



For instance, the types and formats of grain purchase contracts can be as diverse 

 and varied as the firms involved in the grain and feed business. There may be 

 additional provisions that need to be added to address the types of contracts being 

 offered by the grain firm - be they flat price, delayed price, priced-later, cash- 

 forward or a version thereof. 



And, as will be discussed in more detail later, the application of state law and 

 the Uniform Commercial Code can affect dramatically the provisions that should be 

 included in a contract or confirmation memorandum, even to the extent of dictating 

 which of those two documents you use. 



Elements of a Successful Grain Purchase Contract 

 or Confirmation Memorandum 



In reviewing existing grain contracts being used by the industry, the NGFA's 

 Country Elevator Committee and attorneys noticed several examples of unnecessary 

 or excessive provisions that could be excluded without affecting the application or 

 enforceability of the contract terms. 



Simply put, a fine line exists between having a grain purchase contract or 

 confirmation memorandum that adequately addresses the pertinent points of a 

 transaction and one that overdoes it 



Here are some criteria to use in critically examining your company's grain 

 purchase contract or confirmation memorandum: 



▲ Are There Ways to Simplify the Contract? Grain purchase contracts 

 should be concise and readable, and should contain the essential terms and 

 conditions. These include: 



1) The complete and proper name and address of the seller. (You may also want 

 to obtain the seller's social security number and/or federal tax identification 

 number.) 



2) The name and address of the buyer. 



3) The date the contract has been entered into. 



75-885 0-94-6 



