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Contracts and business transactions: What to look out for when concluding contracts with a farmer?

Contracts and business transactions: What to look out for when concluding contracts with a farmer?

Farmer – an entrepreneur or a consumer?

When contracting with a farmer, as a general rule, they will act as an entrepreneur. Only exceptionally, when the farmer runs the farm only for his own needs, he should be treated as a consumer.

In the content of the contract, for the avoidance of doubt, it is worth indicating in what capacity the farmer acts. The law grants consumers broader protection than other contractual parties, which requires adjustment of the provisions of the contract, including their verification for prohibited contractual clauses. Consumers also have a longer statute of limitations on claims, and an entrepreneur suing a consumer has limited possibilities of choosing the court where the case will be heard.

In addition, in the case of consumers, the use of some collaterals of the claims arising from contracts, e.g. in blanco promissory note, may be less effective, since the issuance of a payment order against a consumer will require the court to determine that the contract from which the claimed claim arises does not contain prohibited contractual clauses.

Extended protection for entrepreneurs

Farmers, who are entrepreneurs, may benefit (to a limited extent) from consumer protection if they conclude a contract which is not of a professional nature for them. The protection includes banning the use of prohibited contractual clauses, granting the right to withdraw from the contract concluded at a distance or outside business premises and broader warranty rights for defects in the purchased item.

The farmer's data cannot be found in CEIDG

The agricultural activity of natural persons is not subject to entry in the Register of Entrepreneurs (CEIDG). The register contains updated information on persons conducting business activity, including their address and address for service.

For that reason, when concluding an agreement with a farmer, it is worth to include full contractor's data (including identification and address data) and oblige him to inform about any change thereof. Otherwise, in the case of a dispute with the farmer, it may be difficult to pursue the claim in court.



Anna Szymielewicz

Lawyer

Anna Szymielewicz

Attorney-at-law, Partner

Anna Szymielewicz

Contact:

Rondo ONZ 1
00-124 Warsaw