EMAIL VERIFICATION OF GRAIN BUSINESS OVER THE PHONE

When buying grain it is best to get contracts signed immediately.  If that cannot be done, then leaving as much of a paper trail as possible helps document that an agreement was made.  One method of documentation is with an email to the seller such as the Acknowledgement of Agreement to Sell Grain below and then requiring response to confirm the deal.   The acknowledgement has been reviewed with NDGDA legal counsel. He stresses that while the acknowledgment may help in a court of law to prove a contract existed; under North Dakota law contracts for the sale of goods (e.g. grain) over $500 must be in writing and signed by the seller to be enforceable.  

Of course you will have to modify the form below with your company name and all the rest to fit the sale.   The quality specs are merely an example for HRSW.  You may need more or less or something different.  This is NOT a failsafe end-all method of confirming a deal, nor a substitute for getting a contract signed quickly.  A seller who wants to slip out of the deal may think he can do so by not returning the written contract.  So the elevator manager must consider the possible consequences to his company of making any further commitments regarding this grain, such as hedging or forward sale, before the written contract is returned. There may be financial risk either way.  Another option is for the elevator to forego the acknowledgment and email the contract itself, and state “no deal” until an electronic or written version, signed by the seller, is returned.  

END OF COMMENTARY.  ACKNOWLEDGEMENT FORM BELOW.

 

ACKNOWLEDGEMENT OF AGREEMENT TO SELL GRAIN

 

>>>>>>>>Seller is to immediately reply to acknowledge his agreement.<<<<<<<<

 No transaction is acknowledged by ABC Elevator until it receives a reply to this email.

Seller:  John Jones
Buyer:  ABC Elevator Co
Date of agreement by phone:  August 1, 2008
Approximate time:  10 a.m.
Seller spoke to:  Mary Smith
Kind of grain:  Hard red spring wheat
Quantity:  10,000 bushels  (+ or –  # of bushels of over or under-delivery allowed, if any)
Price agreed:  $9.50
Deliver to:  Podunk location of ABC Elevator Co
Delivery date(s):  August 10-15
Quality specs:  #2 or better, min TW 60, protein range14-14.5%, minimum falling number 350,  max IDK 0.1%, max DON 0.5 ppm

 Upon receipt of your acknowledgement; then no later than the end of the business day following the date of receipt, buyer will put in the U.S. mail a contract for this transaction which you as seller must sign and return immediately.  This acknowledgement does not contain all contract terms. The contract will contain additional terms not shown above.