Agriculture procurement contract is regulated in Polish Civil Code. By concluding this type of agreement, the producer undertakes to produce and provide the contracting party with a specify amount of agricultural products of certain type, and the contracting party undertakes to collect these products on an agreed date, pay the price and fulfil a specific additional benefit if the contract or specific provisions of law provide the obligation to execute such service.
Parties of the agricultural procurement contract
The contracting parties are the agricultural producer (usually individual farmer, gardener or breeder) and the contractor (usually entity, which conducts business activity). The both parties can be natural persons or legal entities. The group of producers or its group is also considered as agricultural producer.
In order to secure proper execution of contract, it may contain additional obligations imposed on the contractor. Additional benefit may be composed of:
- providing the producer with the possibility of purchasing certain tools or machines or obtaining financial aid,
- agricultural technics and animal production science,
- cash benefits,
- material benefits.
Conclusion and execution of the agricultural procurement contract
The contract shall be concluded in writing. The contractor is entitled to supervise and control the performance of the contract by the agricultural producer. The agricultural procurement contract shall be executed at the place where the subject of the contract was produced. Nevertheless, the parties may agree otherwise in this respect, e.g. by obligating the producer to deliver the products to the place specified in the contract.
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