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jdeere70
Friend

Grain Contract Question

 We have a local coop here that is well known for it`s shady and downright crooked business practices. With that being said I wanted to contract 1000 BU of sopybeans. We agreed on a price but as usual the crooks sent a contract out for a nickle less than the agreed upon price. I don`t do business this way so I never signed or returned the contract. I also called them and told them why. I have no contract with these crooks but they called demanding that I fill it. I told them if they produced a contract with my signature I`d fill it but not until. Who`s in the right here? Again, I never signed or returned anything to them and the contract they sent me was for a nickle less that what I agreed too.

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8 Replies
Contributor

Re: Grain Contract Question

If you knew that they were crooked, why did you sell to them?    A nickel on 1,000 bu contract is $50,  I don't know what price you sold them at, but a nickel better not break you.    They probably won't take an order over the phone for you the next time, if you don't honor the contract.    If you don't want them as a place to sell grain too, don't deliver.  Fight it out in court, but $50 would look really cheap then.

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Senior Advisor

Re: Grain Contract Question

I think he needs a tape recorder to record verbal contracts. Perhaps one of them is hearing deficient or at error. I would be unwilling to accept a lower rate without explanation. Anyone can make mistakes but I wouldn't automatically assume it was me.

 

I would talk to management and try to work it out. A verbal agreement means justas much to me as a signed one. I want the reputation of one whose word is his bond. But I'm apt to be a sucker either.

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Senior Contributor

Re: Grain Contract Question

Keep a log of all your verbal contract agreements. A history of agreements between your log and contracts performed is worth something if there is an issue. Otherwise go to the coop and sign a contract at the counter.

 

Verbal contracts are important in my area, but occasionally there is abuse. If you know an outfit is not operating above board then you are at risk with a verbal contract. Either avoid them or be in a position to make out a contract on the spot. If you know there have been bad deals in the community, and they are members, then take them to a board meeting and tell them there's a problem and they have the responsibility for fixing it.

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Veteran Advisor

Re: Grain Contract Question

Go to them and say I believe this is in error.  If they don't agree than ask them to go halves.  If they still don't.  Deliver the grain and stand at the counter and tell them that is the last time until they make an apology. JR

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jdeere70
Friend

Re: Grain Contract Question

I understand the 50 bucks and i could care less about that. It`s more the principle of it than the money. I made an honest deal they did not. So i do not feel obligated to deliver them anything. And I have assured them that I have made my last trip tp any of their elevators. If they want to operate like that they can do so without my business. It also cost them the sale of my fall fertilizer and any more I might need.

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Senior Contributor

Re: Grain Contract Question

There's a long discussion on this in Farm Business Talk.  They can force you do deliver if they want to make an issue out of it.  It will be "he said, she said".  Don't expect to come out with your name in good shape if the word gets around because they will tell their side of the story as they see it.  If you end up in court, you'll lose.

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Veteran Advisor

Re: Grain Contract Question

First the disclaimer; I am from another country so rules may be different.

Now as I read your and the other postings on this I thought for $50 you are buying a lot of trouble.

I then went to my files to confirm my understanding of the fine print and I must confess I have not read all the fine print for some time.

Each elevator has different clauses in their agreements and some are hard to find all the details however they all indicate that the contract will be considered binding if after so many days (the period varies with different elevators) UNLESS you contact them prior to the end of that time period.

Now you say you contacted them and that is good but how do you prove it if you just phoned them?

The lesson I see here is if/when there is a discrepency in a contract when I receive it then I should/will go directly to their office and sort it out with signed paper before I leave. I suppose I could leave the copy there with my signed note of the dicrepency and an indication that I would not be bound by it unless they matched my understanding but I would retain a copy for my records preferrably with a signature on it indicating they had a copy with the refusal.

Now I suggest the best/cheapest solution for you to now 'eat' the $50 and fill the contract.

You will have the satisfaction of telling everyone how they cheated you and can withold your business from them in the future.

Not filling the contract with just your word against them (remember they have a contract that probably says it is good UNLESS you contact them within a few days) will bring other clauses into effect and I am sure you will not like what happens. I have heard a manager say he had to impose legal action against a non fullfilled contract and although he did not want to do it he could not let 1 individual back out or it would set a precedent for others and the contracts would be worthless.

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Frequent Contributor

Re: Grain Contract Question

You made an honest deal with a company you knew to be dishonest.  You may be right but it is not worth the headache of lawsuits, court costs, etc. just to be right.  Eat the $50, never do business with them again, and let everyone else know about what they did.  Also maybe contact the local news or paper.  Nobody likes bad press.

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